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Value of Downgraded Subscription MRR

MRR lost when a subscription changes to a lower plan.

Value of Downgraded Subscription MRR

What is Value of Downgraded Subscription MRR?

This KPI takes into account those subscriptions that move to a cheaper plan which, therefore, entails a lower monthly revenue for your company. However, this metric will only count the difference you lose from the former plan to the current one. For instance, if a user changes from a 200$ subscription to a 50$ one, the Value of Downgraded Subscription MRR will be 150$.

It’s useful for companies to keep an eye on this metric because it shows the evolution of both their performance and their clients’ behavior. In this regard, you’ll get valuable learnings if your clients are changing to lower and cheaper plans, or simply not upgrading at all. This might show that you are offering too much value for a low plan, or too few for the more expensive one.

In any case, you can use this metric to help you in the decision-making when designing a strategy focused on getting more upgrades - or decreasing the downgrades - in your current subscriptions.

Pre-built widgets to display Value of Downgraded Subscription MRR

Value of Downgraded Subscription MRR

month

Value of Downgraded Subscription MRR

How to calculate Value of Downgraded Subscription MRR?
(
    Sum(Downgraded Subscription,MRR Change)
)
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