Three Strategies for Engendering Negative Net Churn in Your SaaS Startup
Tom Tunguz
FEBRUARY 22, 2017
There are three ways to create negative churn that I have observed in the market. First, usage expansion. Second, feature expansion. Third, product expansion. Usage expansion is the most common way to create negative churn. Utility based pricing models like buying SMS credits on Twilio, or compute on Amazon or data processing on Mulesoft lend themselves to gradually increasing account sizes, as customers use more and more of the product.
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