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IP Interview
Published March 30, 2026

Toast Inc: Product Attach Strategy, Downselling & Retention Challenges

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Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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What was churn at the time? How would you describe what the churn situation was?

I'll give you an example. From a packaging perspective, we sold a lot of product à la carte. Even if you bought a bundle, you could still break it apart as a customer. From a sales perspective, we incentivized the team to attach more products, but at the time didn't necessarily have a clawback mechanism. If you sold five modules to a customer and they downsold three of them several months later, the salesperson would still get paid.

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What was churn at the time? How would you describe what the churn situation was?

The promotions that we used, although successful, encouraged this behavior. Offerings like three months free, where you're not getting charged, and all of a sudden you start to get charged and you say, "Whoa, whoa, whoa." From an onboarding perspective, taking you through the customer journey here, we wouldn't put as much effort into onboarding some products versus others. A customer who doesn't activate and adopt a product is five times more likely to downsell that product; that was an issue.

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