Definition
A state where expansion revenue from existing customers, like upsells, exceeds the revenue lost from churned or downgraded customers.
Why it matters for growth
Negative churn means a company's existing customer base grows in revenue even if it adds zero new customers, which is extraordinarily valuable for a founder.
Example
A company loses $10,000 in churned accounts in a month but gains $15,000 from upsells, producing negative net churn overall.
FAQ
- What is Negative Churn?
- A state where expansion revenue from existing customers, like upsells, exceeds the revenue lost from churned or downgraded customers.
- Why does Negative Churn matter for growth?
- Negative churn means a company's existing customer base grows in revenue even if it adds zero new customers, which is extraordinarily valuable for a founder.
- What is an example of Negative Churn?
- A company loses $10,000 in churned accounts in a month but gains $15,000 from upsells, producing negative net churn overall.