Let's go back to the first example

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But many variables are at play and it is practically impossible to keep the base % stable. Therefore, the general rule is: ensure that your churn rate is always as low as possible. As the customer cancellation rate can be associated with several factors, it is difficult to determine a fixed value for the rate. In some sectors, such as saas platforms, it is possible to work with rates of around % to % per year.

Naturally, services that require high-ticket, long-term contracts belgium whatsapp data tend to have lower fees. Hiring (as well as abandonment) usually takes time and involves several people, so turnover is low. Is it possible to achieve negative churn? Yes, it is possible. But what is negative churn? This is when a business manages to increase sales to its existing customer base, and revenue exceeds the value lost through cancellations.

, which we cited when talking about revenue churn. The company lost customers, all subscribers to the r$ plan, the total loss is r$, but in the same month, the company managed to get customers to upgrade the r$ plan, to the most expensive of all, which costs r$, with these sales to those who were already in the customer base, revenue increased by r$, — a value greater than the r$, lost through cancellations.