For many businesses, churn feels as inevitable as the ebb and flow of the Atlantic, and whether they succeed or fail depends entirely too much on the tide. But others have found the fabled middle passage – not just stopping churn, but reversing it.
Is negative churn a myth? You decide.
Lincoln Murphy defines negative churn as:
“When, for a given time period, expansion revenue more than offsets any revenue you lost from customer churn, downgrades, lower usage, etc.”
This happens when existing customers expand their use of your product by purchasing add-ons, paying more over time and increasing their Lifetime Value to such an extent that it makes up for any revenue lost to churn.
Here’s what that might look like…