HR Tech vs RegTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
RegTech has a lower monthly churn rate (1%) than HR Tech (1.8%), a difference of 0.8 percentage points. RegTech median ARPU is $420 versus $210 for HR Tech.
Head-to-head benchmarks
| Metric | HR Tech | RegTech |
|---|---|---|
| Monthly churn | 1.8% | 1% |
| Annual churn | 19.9% | 11.4% |
| Median ARPU | $210 | $420 |
| Typical customer base | 200-5,000 | 50-1,000 |
Top hr tech churn drivers
- HRIS platform consolidation eliminated standalone tools30%
- Headcount reduction reduced per-seat billing value25%
- Implementation failure or low adoption by HR team20%
- Competitor offered native integration with existing HRIS15%
Top regtech churn drivers
- Regulatory rule change that product had not yet implemented28%
- Financial institution internalized compliance workflow26%
- Acquisition of customer eliminated the compliance function20%
- Product could not scale to new jurisdiction or regulatory body16%
Why regtech retains better than hr tech
The 0.8-point gap between RegTech and HR Tech reflects differences in switching cost, value density, and purchase motivation. RegTech customers face higher integration and data-migration friction, which extends tenure. HR Tech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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