Hacker News new | ask | show | jobs
by andreasklinger 4961 days ago
Wouldn't given that ever freemium model (e.g. $0 -> $15) then automatically create negative churn? Doesn't it make more sense to track first-time purchases/upgrades and future upgrades together? Because if I am tracking revenue oriented I am not really interested in tracking customer growth but revenue growth
1 comments

In a freemium model, looking at Revenue churn on the $0 accounts would definitely give you a pretty useless metric.

For some metrics it makes sense to lump the two together. But the distinction between the two is helpful for measuring a product's ability to up-sell itself to the existing customer base.

If you're interested in tracking revenue growth instead of customer growth - then say you have -1% revenue churn month/month, your existing customer base is going to be paying you 1% more the next month (even though you may lose a few customers along the way).