Modules
Class 23: Solving Net Revenue Retention in HubSpot - Part 2
Transcript
So your upgrades will mean nothing, and you'll just conflate upgrade and net new. So it shouldn't be zero. It should be some value.
And your ending MRR is this month's MRR is more than last month's MRR. That means this is an upgrade. And then we basically do the difference between these two and push out the value of the difference. So if, for example, beginning MRR was, thousand and ending MRR is one thousand two hundred, then the upgrade is two hundred dollar for this particular revenue snapshot.
Next is downgrade. So downgrade is the reverse of upgrades as you can understand. If your beginning MRR is higher and your ending is lower, not zero, it's lower. It has to have some value. It cannot be zero as you can see. So it has to be lower, and then we do the difference, and we show, hey. This is how much this is the amount that we churned.
And finally That's like partial churn. So you getting into churn, it would have to be greater than zero prior to the month, and then at month end, the the delta now takes it to zero, which would be It's partial churn.
It's downgrade. It's contraction. Yeah. Different different companies call it different things. I try to keep it simple, downgrades. But your department can call whatever. I'm not gonna judge you.
I will. I'll judge you. But, yeah, that's helpful. The differentiation between downgrade has to be some value more than zero, and the ending value cannot be zero. It just had from a thousand to a hundred dollars. That's still a downgrade, but it's not churn because you're still on the books.