Both churn and net revenue retention can be important metrics to track, and they can provide valuable insights into the health and success of a business.
Churn, or the rate at which customers stop doing business with a company, can be an important indicator of customer satisfaction and loyalty. If a company has a high churn rate, it may indicate that customers are not satisfied with the products or services being offered, or that they are not seeing enough value in them to continue doing business with the company. High churn can be costly, as it can require a company to constantly acquire new customers to make up for those who are leaving.
Net revenue retention is a measure of how much revenue a company is able to retain over time from its existing customer base. It takes into account any changes in the amount of money that customers are spending with the company, as well as any changes in the number of customers. A high net revenue retention rate can be a sign that a company is effectively retaining and growing its customer base, and that its products or services are meeting the needs of its customers.
In summary, both churn and net revenue retention can be important metrics to track, and it may be necessary to consider both in order to get a complete picture of a company’s customer base and overall financial health.