SaaS Metrics School

What’s the Impact of This Customer Downgrade Scenario?

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In episode #239, I’m addressing a reader's question. Thanks, John! Here’s the scenario.

  • The customer books an annual contract at $24K ARR / $2K MRR.
  • In Month 6, they are unhappy with the service and want to leave.
  • The sales rep convinces them to stay and signs them up for a $12K ARR / $1K MRR contract. In addition, the sales rep convinces them to extend service for another 12 months starting at month 6.

    • Do we count this as churn? Do we count this as a downgrade? What is the downgrade amount?

    Find out how this impacts bookings and retention.

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    SaaS Metrics SchoolBy Ben Murray
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