http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png 0 0 Daryl Lu http://www.daryllu.com/wp-content/uploads/2018/10/entrepreneurial-ninja_logo_sm.png Daryl Lu2017-09-05 10:58:002017-09-05 10:58:00Negative Churn: Continued Growth Beyond New Customers
Negative churn – a major milestone for any company. Negative churn occurs when the growth of revenue offsets the loss of revenue from customers who leave (churn). This is a great metric for SaaS companies, especially.
Churn, if you recall, is the rate of loss of customers (leave). Just about every company will experience loss of customers in recurring revenue companies.
In effect, companies who have negative churn can continue to grow without having to sign any new customers (at least, short-term). That is a remarkable milestone, and one that is highly valued by investors. It points to growth opportunities with up-sell and cross-sell opportunities as well as high retention. It points to a loved company and its products.
Achieve low churn. Then, aim for negative churn.