{"id":20602,"date":"2023-07-06T14:53:58","date_gmt":"2023-07-06T12:53:58","guid":{"rendered":"https:\/\/chartmogul.com\/blog\/?p=20602"},"modified":"2024-09-23T16:41:39","modified_gmt":"2024-09-23T14:41:39","slug":"negative-churn","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/negative-churn\/","title":{"rendered":"Net negative churn in SaaS \u2014 definition, benchmarks & tips"},"content":{"rendered":"\n

Churn, SaaS companies should avoid it like the plague. It\u2019s a silent killer! But is the term churn always bad? Say hello to negative churn, churn\u2019s much more friendly sister metric. You won’t avoid negative churn, in fact, you should do everything in your power to achieve it. If you\u2019re looking for positive growth, you need negative churn.<\/p>\n\n\n\n

Net negative churn, or negative churn, is known as the holy grail of SaaS or \u201cSaaS nirvana\u201d. <\/p>\n\n\n\n

Churn, in general, is a key metric and health indicator for your SaaS business. Let\u2019s take a look at negative churn, what it is, why it\u2019s essential, and how to achieve it. We\u2019ll also share the latest benchmarks on negative churn among SaaS businesses.<\/p>\n\n\n\n

Here are the topics we\u2019ll cover in this post:<\/p>\n\n\n\n

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  1. What is churn?<\/a><\/li>\n\n\n\n
  2. What is negative churn?<\/a><\/li>\n\n\n\n
  3. Benchmark your churn metrics against 2100+ SaaS businesses<\/a><\/li>\n\n\n\n
  4. How negative churn causes explosive growth<\/a><\/li>\n\n\n\n
  5. How to achieve net negative revenue churn<\/a><\/li>\n<\/ol>\n\n\n\n

    What is churn? A quick refresher<\/h2>\n\n\n\n

    To understand net negative churn we need to quickly define churn and how we calculate the metric. Skip this part if you are a churn master already.<\/p>\n\n\n\n

    Churn is a health indicator of your existing subscriber base. In simple terms, churn is the rate at which customers or revenue is leaving your SaaS business.<\/p>\n\n\n\n

    At a high level, you can look at churn in two ways: <\/p>\n\n\n\n

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    1. Customer churn<\/strong> \u2014 measures the rate at which customers are leaving your SaaS business<\/li>\n\n\n\n
    2. Revenue churn<\/strong> \u2014 measures the rate at which revenue is leaving your SaaS business<\/li>\n<\/ol>\n\n\n\n

      Calculating Churn:<\/p>\n\n\n\n