Net Revenue Churn
Churn rate that accounts for expansion revenue from existing customers who upgrade or expand usage.
Definition
Net Revenue Churn considers both lost revenue from churned customers and gained revenue from existing customers who expand their usage, providing a more complete picture of revenue retention.
How to Calculate
Net Revenue Churn = (Lost Revenue - Expansion Revenue) / Starting Revenue × 100
Why It Matters
- Negative Churn: Can achieve negative churn when expansion exceeds losses
- Growth Driver: Shows power of land-and-expand business models