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Formula
NNC = (Revenue from Expansion - Revenue from Churn) / Total Revenue at Start of Period * 100
Know your metric
Importance of
Net Negative Churn
Revenue Retention
Indicates how well the company retains and grows revenue from existing customers.
Customer Loyalty Insight
Suggests higher customer satisfaction and loyalty.
Financial Health Indicator
Signals strong financial health if positive.
Drawbacks of
Net Negative Churn
Complex to Calculate
Involves multiple revenue streams.
High Variability
Subject to fluctuations based on customer behaviour.
Misleading
Can obscure actual customer loss.
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