Scientific Definition
Funnels rewarded for new logos under-invest in retention and lifetime value.
Plain-English Definition
Funnels rewarded for new logos under-invest in retention and lifetime value.
Feynman Explanation
The leaky bucket has a CMO and a head count.
Core Principle
Funnels rewarded for new logos under-invest in retention and lifetime value.
Mechanisms
Pending editorial review.
Funnels rewarded for new logos under-invest in retention and lifetime value.
Pending editorial review.
Pending editorial review.
Vanity-funnel KPIs ignore unit economics.
Pending editorial review.
Pending editorial review.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
The leaky bucket has a CMO and a head count.
Examples
- Companies with 130% churn proudly hiring more SDRs.
- Vanity-funnel KPIs ignore unit economics.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Net-revenue retention as primary growth KPI.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Net-revenue retention as primary growth KPI.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
Earn-outs designed to retain founders often demotivate the team they bought.
Cuts that lift margin this quarter erode product quality and brand equity over years.
Narrowly tied bonuses get gamed; people optimize the metric, not the underlying goal.
Re-hires often get raises larger than internal promotions.
Pay tied to stock price encourages short-term price management.
CEO pay tied to size rewards deal-making even when acquisitions destroy value.
Sales forecasts under-set to ensure attainment bonus.
Capital tied to growth rates funds unsustainable scaling and unit-economics denial.
Managers measured by team size grow teams beyond need.
Awards reward visible novelty; quiet excellence goes unrecognized.
Innovation programs designed to signal innovation, not to produce it.
Managers hoard talent; cross-team mobility dies.