You may have noticed that your Contraction MRR figure has skyrocketed throughout the current month. If you haven't had many downgrades, coupon applications, credit applications, or refunds recently, you might be wondering what happened.
During the current month, the Contraction value will continue to increase throughout the month and when the month closes - we will finally be able to determine what has actually churned.
The reason for this is that you more than likely still have a lot of monthly subscriptions that need to be charged. For now, the subscriptions that have not yet renewed are counting toward Contraction. Until the month ends and we are able to accurately calculate these monthly metrics, the churn amount will always be $0 and the other monthly metrics will also be inaccurate.
We suggest thinking of it this way - these are "monthly" metrics, so in order to do all of the calculations, the month has to close first. Therefore, you will need to check back in on the 1st of the next month to view your actual Contraction rate.
Comments
0 comments