What is Reactivation MRR?
Reactivation MRR is the total amount of recurring revenue generated from reactivated customers who had previously cancelled services and have resumed a subscription within the current tracking period.
How to calculate Reactivation MRR
Say two customers, each paying $100 MRR, had cancelled their subscription last month but reactivated this month. Your total Reactivation MRR in this case would be $200.
More about this metric
Reactivation MRR refers to churned customers who have returned to your business and have resumed contributing to your MRR. Depending on the size of your business and the industry you are in, Reactivation MRR can either belong to new MRR, or can be recognized as standalone revenue under the reactivation label. Generally, reactivation MRR decreases customer acquisition costs when compared to net new MRR. While it is associated with relatively lower CAC, reactivation MRR still has a cost. If this metric is constantly on an upward trend, make sure that the costs of reactivation are not exceeding your revenue. You may want to focus on retention rather than depend on discounts to bring back churned customers in order to avoid overwhelming your resources and further raising churn.
Additional Reactivation MRR recommended resourcesRead more about the role of Reactivation MRR in growth.
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