Startup Glossary
A complete library of terms, metrics, and calculations for your startup.
Retention
Contraction MRR
Contraction MRR is the total reduction in MRR for a given month through downgrades or churns.
Customer Churn
Customer churn is the percentage of customers your business lost in a set period of time.
Customer Retention Cost
Customer Retention Cost (CRC) is the total cost of retaining a customer.
Downgrade MRR
Downgrade MRR is the amount of MRR lost due to customers paying less in subscription costs than the previous month.
MRR Churn
MRR Churn is the amount of MRR lost due to downgrades or cancellations from your customers in a given period of time.
Negative Churn
Negative churn is when new revenue from existing customers (expansion MRR) is greater than the amount of revenue you lost from cancellations and downgrades (churned MRR).
Revenue Churn
Revenue churn is the percentage of monthly recurring revenue (MRR) your company lost from downgrades and cancellations in a given period of time.
Revenue Retention
Revenue retention is the percentage of your revenue that is retained over a given period of time.