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by trimboffle 2344 days ago
>>> Thanks to developers’ trust in our core infrastructure and their recommendations, we’re fortunate to have a constant and growing inbound flow of leads and net negative churn, meaning the value of usage-driven upgrades outweighs the loss in revenue from subscription cancellations.

I’m glad they clarified what “net negative churn” means, that really cleared things up.

7 comments

It reads like a Markov chain autocomplete. Let's see what my phone produces if prompted with the first bit:

Thanks to developers’ trust in our core infrastructure and their recommendations, we are looking for ways to improve the quality of our products by providing a service to our clients with the highest level of service for the remainder of the year.

Here are some Talk to Transformer outputs:

> Thanks to developers’ trust in our core infrastructure and their recommendations, we're able to deliver the highest quality services available. We're focused on delivering your most productive platform, whatever you're doing with it. From your smartphone and tablet to servers in data centers and data centers in offices. Our solutions help you store, process and manage everything from plain text and binary data to HD video and audio files. About Us: Cisco is a leading technology company known for innovation, innovation, innovation. We use technology to create a better world. With global operations in more than 100 countries, Cisco provides the essential technologies that enable companies to compete and win in today's global economy. For more information, visit www.cisco.com.

> Thanks to developers’ trust in our core infrastructure and their recommendations, our deliverables are performing better than ever. We are further expanding our market reach and capabilities, making us more competitive and reducing cost through better processing, architecture, security and data centers. That's the good news. The bad news is, we're reaching our head-end capacity and need more help. The Rails team members that work on applications and features on a daily basis don't want to burden the engineering team with refactoring and maintenance. They know that when the infrastructure is gone, they have a new responsibility to help build applications for new players. And there is a new player, but we are still in its infancy.

> Thanks to developers’ trust in our core infrastructure and their recommendations, we have secured the Ecosystem. This Ecosystem is already in the technology and revenue channels process. We have a team working on it, including the core guys and big but skilled giants who have also invested their expertise and assets to become the gateway into our ecosystem. As more people start to use this new feature, they will ask for news. In terms of devs, we already have more than 40 developers on board. We have identified a cluster in Africa which is running our client, and have a major team dedicated to project execution and content creation. As development work is ongoing and we don't have exact numbers, we can't officially announce how many people we have on board, however we are not aware of any

Every business basically has 4 ways revenue increases or decreases month over month.

New customers spending new money (net new)

Current customers increasing spend (expansion)

Current customers decreasing spend (contraction)

Current customers leaving (traditional churn)

Net negative churn means when you add up the bottom three, revenue has increased.

Another way to say it is you don’t have to add new customers to keep growing revenue.

They are getting more new customers (edit: others have pointed out it also includes increased revenue from existing customers), thanks primarily to personal recommendations (word of mouth), than they are losing customers.
That's not true

They are getting more increased revenue from existing customers than they lose from cancelling customers, which is very different

You sir, should have written the article.
Except that this rewritten version is not correct!

They aren’t necessarily getting more new customers than old customers cancelling, but the combination of revenue from new customers and added revenue from upgrades from existing customers is more than the revenue lost from customers who cancel.

Which, btw, is exactly what they say, using standard industry terms, and it’s not ambiguous. It just wasn’t written for you, that’s all.

Inbound -> people coming to the site (instead of salespeople calling them up)

Churn -> people canceling their subscriptions.

Churn Rate -> rate at which they're canceling (ex: 5% a month)

Net Negative Churn Rate -> if the overall dollar amount of people moving from $50/mo plans to $100/mo plans is higher than the dollar amount of people canceling subscriptions.

So while the Churn Rate doesn't change (still 5% a month) the overall monthly revenue is still increasing. This is really hard to do and it's a good indicator that they're making something that people really want and are willing to pay to use.

I don't think this is that jargony. Anyone in the target audience for the article should know what "churn" means, and given that knowledge should be able to work out what "net negative churn" means. Probably the clarification would've been better if it had started "meaning the revenue from usage-driven upgrades" (and likewise "usage-driven" and "net" in "net negative" don't add anything) but overall it should still be comprehensible.
let churn = (reduced income from existing customers cancelling the service)

let use_increase = (Increased income from existing customers using the service more)

assert churn > use_increase;

net_churn = churn - use_increase;

assert is_negative(net_churn);

I am laughing harder than I should really