Consumption billing models provide real-time visibility into potential customer churn
Chris Degnan · Chris Degnan: Why You Should Hire a Head of Sales Sooner Than You Think | E1080 · 20VC with Harry Stebbings · Nov 10, 2023 · at 35:31
Chris Degnan is Chief Revenue Officer at Snowflake. He explains how Snowflake tracks daily customer spending variations to identify churn risks immediately.
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“So with Snowflake being a consumption model, you could see the dial turn real time. I look at revenue on a daily basis. And if a customer goes up really fast or down really fast, it sets off alarm bells because I don't want them to overspend because all of a sudden they'll be really mad at me. And I don't want, and if they're underspending, Then I go right to the sales team and say, why? What's happening? And so I get real-time feedback on churn.”
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