The additional recurring revenue generated from existing customers through either Upsells or Cross-sells expressed as a percentage of existing ARR. Enterprise SaaS companies use this metric because the ACV of new customers can be expanded by capturing a larger share of their technology budgets by selling to more users or selling more products to the customer. Net Churn Rate / Net Expansion Rate – The net result of Gross Churn Rate and the Expansion Rate. Note that Net Churn Rate is shown as a negative number and Net Expansion Rate positively.
The additional recurring revenue generated from existing customers through either Upsells or Cross-sells expressed as a percentage of existing ARR. Enterprise SaaS companies use this metric because the ACV of new customers can be expanded by capturing a larger share of their technology budgets by selling to more users or selling more products to the customer. Net Churn Rate / Net Expansion Rate – The net result of Gross Churn Rate and the Expansion Rate. Note that Net Churn Rate is shown as a negative number and Net Expansion Rate positively.
