I agree that there will always be churn. Increasing churn though...

I agree that there will always be churn. Increasing churn though can be a pointer to other issues.

When the installed base was ~ 500 units and churn was ~ 1% we are talking about 5 units PA.
Now installed base is over 1000 units and churn is 3% we are talking about 30 units PA.

For a company crowing about sales of 49 units per qtr. only 20 of which are in their key target market where they are putting all of their effort losing 30 units PA to churn is a cause for concern.

I also agree about the extra people. What were they all doing before if only now they are being redirected to customer facing roles?