• Skok Negative Churn

Negative churn. It’s music to the ears of any sales rep. It’s the veritable state of enlightenment for tech companies.

It’s the holy grail of the industry. While the word “negative” generally connotes, well, a not-so-positive experience, we can’t seem to find a more melodious SaaS term. It may sound counterintuitive, but negative churn is a glorious thing.What is negative churn, you ask? To be honest, the definition is a bit vague.Essentially, net negative churn occurs when the additional revenue you generate from existing customers, month over month, outperforms the revenue you’re losing due to customer cancellations and downgrades. It occurs when you’re making more money each month due to additional spending from existing customers—even if you’re losing customers.We know what you’re about to say. Every company loses customers.

Customers change their minds. Your services and products evolve. And sometimes you just don’t meet the needs of every single person, every single time.

Jun 6, 2019 - When you have net negative churn, the additional revenue you generate. Additional money (services, upgrades, and add-ons) that your churn is offset by it. Most SaaS companies with high customer churn and acquisition. Passives have scored the company a seven or eight on the 10 point scale. They’re not really bending either way in terms of strong opinions. That’s why they’re called passives or passive customers. The third category encompasses the biggest range in the Net Promoter Score scale – the negative range from 0 to 6. Net churn, on the other hand, takes into account both the revenue lost and the expansion revenue gained from current, established customers choosing to expand their contracts. Net churn is a more accurate way to view the full picture for your business during a given time period.

These are all very true statements. In other words, customer churn is just a reality of business for. So, how do you lose customers and still grow?The short answer is that you need to increase expansion revenue—or revenue per customer.

Skok Negative Churn

Expansion revenue is achieved when you increase the revenue you’re getting from current customers and products. When executed properly, expansion revenue can have a high-margin and low-cost option that can have a significant impact on your churn rate and bottom line.It’s much easier to get more money from existing customers who are happy with your products. To help achieve more revenue per customer—and, in turn, attain negative churn—consider these two techniques: 1. Cross-sellingCross-selling occurs when your, account managers or sales team convince customers to purchase products or services to enhance a previous purchase. Think of it like buying a pair of socks to match a pair of shoes you just purchased. You may not need the socks—but damned if they don’t look good with those new kicks.

In this regard, cross-selling provides value to clients. And it increases revenue per customer.If you have versions of your product that are more featured—and, in turn, more expensive—you have an opportunity to upsell. Cross-selling offers are directly linked to the initial solution and are often sold at a lower price. You’ve already gotten people in the door. Now is the time to get them to pay for more advanced and robust solutions. Upselling and UpgradingAh, the upsell: the oldest trick in the traditional-sales book. Upselling and upgrading occur when, account managers, CSMs or sales reps offer customers a more expensive product from the same product line that they already own or are about to purchase.Whereas upselling centers on customers who have already purchased an item—and have loved it—upgrading focuses on updated versions of an existing product.

Prime upsell candidates include those who have posted positive reviews online. The best upgrade situations occur when you identify a customer with a problem or an opportunity to save money.When executed properly by your, account managers and sales reps upsells and upgrades are relatively simple ways to increase revenue per customer at a lower cost to acquire that additional revenue.

By tailoring an offer around a specific customer’s needs, you not only provide additional value to your customer base, but you create a win-win situation for them and your organization.For examples of companies that have found success, read our piece about.

Software as a Service (SaaS), the best-known branch of cloud computing, is a delivery model in which applications are hosted and managed in a service provider's datacenter, paid for on a subscription basis and accessed via a browser over an internet connection. As a mainstream business option it's often seen as dating from the launch, in 2000, of the hosted customer relationship management (CRM) service, which has become the 'poster-child' for SaaS. However, its roots lie in earlier developments in virtualisation, service-oriented architecture (SOA) and utility/grid computing.As a term, 'Software as a Service' has been in common usage for nearly a decade, with its cloud-stack companions (PaaS) and (IaaS) gaining currency more recently.

(PaaS refers to the on-demand delivery of tools and services that allow SaaS applications to be coded and deployed, while IaaS covers the on-demand delivery of virtualised servers, storage, networking and operating systems):Infrastructure hosted in a third-party service provider's datacenter is called 'public cloud' infrastructure, while similar technology hosted within an enterprise's network is called 'private cloud' infrastructure. So-called 'hybrid clouds' mix the two approaches, with certain workloads or business processes remaining in-house and others - perhaps less mission-critical - being outsourced to public cloud services. Public cloud services can also be brought into play on a temporary basis, to cope with peaks in demand that would otherwise overwhelm a business's private cloud infrastructure.Before SaaS, you generally rented software via an 'Application Service Provider' or ASP. Pros and cons of SaaSPROSFor businesses, there are many potential benefits to be had from adopting the SaaS model.

These include:Cost savings Moving from the capital-heavy expense of installing, maintaining and upgrading on-premises IT infrastructure to the operational cost of a SaaS subscription is a tempting business proposition - particularly in the short-to-medium term. By registering you become a member of the CBS Interactive family of sites and you have read and agree to the,.

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