Contraction
The reduction in revenue from an existing customer usually from seat removals, downgrades, or removed services.
Contraction MRR = revenue lost from downgrades, seat reductions, or removed features from existing customers.
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THE HONEST TRUTH
Contraction is not necessarily a churn signal. It directly affects Total contract Value and will benefit from some detailed investigation.
Contraction is not necessarily a churn signal. It directly affects Total contract Value and will benefit from some detailed investigation.