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Hey James,
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Later today, we'll be rolling out a minor improvement to how ChartMogul calculates
<a class="" rel="noopener" style="text-decoration: underline; color: #0000FF;" target="_blank">
Gross MRR Churn Rate
</a>
.
<br/>
<br/>
This change may cause your Gross MRR Churn Rate chart to change slightly (historically and going forwards).
<br/>
<br/>
The good news is, if you do see any change to this metric it will only be for the better (e.g. a slightly lower Gross MRR Churn Rate).
<br/>
<br/>
What's the change?
<br/>
With the current calculation it is possible for ChartMogul to “over count” the amount of MRR contraction that a customer has experienced and therefore inflate the Gross MRR Churn Rate numbers.
<br/>
<br/>
This can happen if a customer had a contraction of MRR, followed by an expansion of MRR, followed by a contraction of MRR, all within the same chart interval period, e.g.
</p>
<ul style="line-height:1.8;mso-line-height-alt:25.2px;font-size:14px">
<li>
-$100 MRR contraction
</li>
<li>
+$100 MRR expansion
</li>
<li>
-$100 MRR contraction
</li>
</ul>
<p style="margin:0;font-size:14px;mso-line-height-alt:25.2px">
In this scenario the current formula would ignore the $100 expansion and assume there had been -$200 MRR of contraction for this customer, which would artificially inflate the Gross MRR Churn Rate number for that period (provided all 3 of these events had happened in the same chart interval period).
<br/>
<br/>
This issue is more likely to manifest if you view the Gross MRR Churn Rate chart on Year interval, as there's more chance of a customer having a MRR history similar to the above example when measuring churn rate for a longer time period.
<br/>
<br/>
We've addressed this issue by rebuilding this report on top of the “Net MRR Movements” dataset within ChartMogul, which only produces a single MRR movement per customer per time period. This dataset powers the retention rate charts and is better suited to power the Gross MRR Churn Rate chart as it resolves the issue described above.
<br/>
<br/>
If you have any questions or concerns about this change, please reply to this email.
<br/>
<br/>
Best regards,
<br/>
<br/>
Ingmar Zahorsky
<br/>
VP of Customer Success, ChartMogul
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1 year ago - no-reply@chartmogul.com
Upcoming change to the Gross MRR Churn Rate calculation
Hey James, Later today, we'll be rolling out a minor improvement to how ChartMogul calculates Gro...