Metric: Net MRR Churn Rate

Net MRR Churn Rate is the rate at which you are losing MRR through downgrades and cancellations, offset by expansions and reactivations. 

 

How is it calculated?

(SUM of Churn & Contraction MRR - SUM of Expansion & Reactivation MRR) / MRR at start of the period

 

What analysis can be gained?

This report is useful if you want to analyze at the rate at which you are losing MRR. 

Net MRR churn rate can paint a more positive picture, as it includes the strength of your customer's upgrade activity. It is a popular metric to monitor the efforts of your customer success team. 

You can use segmentation to learn more about the data. For example, you could see the Net MRR Churn Rate for subscribers who responded negatively to a Net Promotor Score (NPS) survey compared to your average for all subscribers. 

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Further reading

Learn more about churn rates in The Ultimate (SaaS) Churn Rate cheat sheet.

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