How can I find out what is contributing to Contraction MRR?

In the Monthly Recurring Revenue Analytics dashboard, Contraction MRR refers to a negative change in an account's contribution to MRR when compared to the previous month. Common reasons for Contraction MRR include: subscription downgrade, a refund, coupon or credit being applied to bring the subscription amount paid down or an account removing one of their multiple subscriptions.

For example, if a customer had $100 in MRR last month vs. $80 in MRR this month from a downgrade to a lower-priced plan - this would result in Contraction MRR total of $20

Right now we don't have access to the underlying data for our Analytics reports, but you are still able to calculate this figure by downloading a few of our reports to identify where the contractions are coming from: 

 

Subscription Downgrades: Download the Subscriptions export (Subscription Status: Live, Time Range: All Time) and use the modified_at column to see if a subscription was changed. You can filter that column as well if you only want to view modified subscriptions in a certain time period (i.e. filter only April modified subscriptions to figure out which changes contributed to the April Contraction number). You would then have to go to the account page in the UI to confirm that the modification made affected contraction, such as a subscription downgrade. You can  use the account's activity log to view the subscription upgrade/downgrade details, including the plan names, so that you can compare the old subscription amount with the new amount. 

If the price has decreased, that will count toward contraction. 

 

Refunds: Download the Transactions export and then filter the "type" column to only view refund transactions. Refund amounts count toward contraction, as well. 

 

Coupons: Download the Coupon Redemptions export. Use the "applied_at" column to determine when the coupons were applied. If the coupon was applied during the month of the contraction, then you can deduce that this is a contraction if the customer was paying regular price the month prior. 

 

Credits: Download the Adjustments export. Use the "adjustment_type" column to filter only Credit adjustments as only these would count toward contraction. Use the "adjustment_status" column to confirm that the credit was already invoiced. 

- NOTE: If you have your MRR Analytics configuration set to "Remove charges from failed invoices", then you will also want to filter the invoice_state column to only show Paid invoices, since unpaid/failed invoices would not contribute to Contraction MRR.