Hi vmk
as you say, it makes sense to measure net churn with reference to an individual client as per your example with Pepsi, however I think it useful to understand growth in revenue from the existing client base and churn (loss of revenue from existing client base) as separate figures, not just as a single figure of net churn. Who is increasing seats and why and vice versa is important in understanding where to best to allocate resources in the future.
As per your gym reference filling a leaky bucket faster than the water drains out is all well and good until your arm gets tired or the well dries up. There will always be spillage, but plugging leaks is important in realising full potential for growth.
To that end gross churn and net growth from existing customers seem useful indicators to me, but understand they may not be the norm.
Thanks for your efforts over the last few months to provide informative and insightful posts on this company. I appreciate your work.
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