Glossary > Negative Churn

Negative Churn

Negative Churn or Net Negative Churn is when the amount of subscription revenue from existing customers is greater than the revenue lost from users canceling their subscriptions.

For SaaS companies, the key strategy to achieving Negative Churn is to increase monthly recurring revenue (MRR) from existing customers. This can be accomplished by selling upgrades, cross-sells, and add-ons in addition to the base subscription.

Negative Churn = Churned MRR – Expansion MRR / Starting MRR

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