When analyzing the financial health of your company, there’s more than one way to use MRR to draw valuable insights. Here are four additional types of MRR you can calculate.
New MRR is recurring revenue that comes from new customer acquisitions. For example, if you add a new customer to one of your monthly subscription plans, then the revenue they contribute is considered new MRR.
Expansion MRR comes from upselling or cross-selling to existing customers. So, if one of your current customers upgrades their subscription by adding more users to their account that revenue counts towards Expansion MRR.
Churn MRR is revenue that decreases due to downgrades or gets lost due to canceled subscriptions. As you know, churn is the enemy of all subscription businesses and should be monitored closely. So, keeping an eye on Churn MRR is essential.
Reactivation MRR is revenue that is recovered after reacquiring past customers. This can be done through email, retargeting ads, or even just reaching out to them on social media. And because the money you put into those reacquisition methods can add up quickly, it’s good to stay on top of Reactivation MRR as well.
With Zuora running in the background, we are well-equipped to deliver sustainable value to our customers, based on dynamically evolving offerings that fit the healthcare industry & care providers’ demands.
– Rahma Samow
Head of Siemens Healthineers Digital Health Global