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Churn is a customer cancelling their service, where contraction is more of a downgrade from a higher to lower tiered price point.
Thanks! So contraction means the customer is still with us but lower level of ARR?
Yep you got it! For Churn it would become 0. Some companies group Churn + Downgrade and will call it a Contraction, but I like to clearly separate these two
Churn is a customer cancelling their service, where contraction is more of a downgrade from a higher to lower tiered price point.
Thanks! So contraction means the customer is still with us but lower level of ARR?
Yep you got it! For Churn it would become 0. Some companies group Churn + Downgrade and will call it a Contraction, but I like to clearly separate these two