## Definition of Net Negative Churn Net Negative Churn (NNC) is a term used to describe a situation where the value generated by a company's existing customers is greater than the value lost from customers who have chosen to leave. It is an important concept in [[product growth]], as it indicates that the company is able to retain and gain customers in equal or better measure, which can lead to sustained growth. By understanding customer [[Churn Rate]] and developing strategies to reduce it, product managers can ensure that the company is able to maximize the value of its customer base. ## Net Negative Churn Formula & How to Calculate The formula for calculating a negative churn rate is: > (Retained Revenue - Lost Revenue) / Lost Revenue To illustrate with an example, let's say a company had $1000 in revenue from customers who left and $1200 in revenue from customers who stayed. The negative churn rate would be (1200 - 1000) / 1000 = 20%. This means that the company generated 20% more revenue from customers who stayed than from customers who left. ## How to Grow Net Negative Churn To grow Net Negative Churn try: 1. The upselling. Upsales are when you sell a more powerful and expensive version of a product that the customer already has. 2. Cross-selling. Cross-sales is when you offer your customers additional value with different features and add-on products. ## Additional Links - https://www.paddle.com/resources/negative-churn