// Metrics

Contraction ARR

ARR lost from existing customers via downgrades, seat reductions or plan changes, short of full churn.

In depth

The silent NRR killer. A customer that drops from 100 seats to 60 is not churned, but is a 40% revenue loss. Segment contraction reasons like you segment churn.

Related terms

Churn

The rate at which customers or revenue leave the business in a period.

NRR

Net Revenue Retention, % of recurring revenue retained from existing customers over 12 months, including expansion, minus churn and contraction.

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