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Net MRR Change is the net difference in MRR between 2 dates.
This metric allows you to understand growth in MRR. If it is positive, MRR is growing, otherwise it's declining. It's a simple but vital metric that helps companies understand whether they are growing, and if so, how fast.
MRR Won - MRR Lost
Net MRR Change is calculated by subtracting MRR Lost from MRR Won.
Analyse Net MRR Change by segment to identify the fastest and slowest growing channels and customer demographics. To reduce MRR Lost, engage with customers showing signs of potential churn or contraction. To increase MRR Won, focus on expansion as well as acquiring new customers. The ROI in spending resources on expansion and re-activation is generally higher than the ROI in acquiring new customers.
A common mistake is to overlook expansion and re-activation. While new customer acquisitions are important, focusing on them can lead to missing significant growth opportunities. Another is to underestimate the compounding nature of MRR Lost. It not only affects current revenue but also the remainder of a customer's LTV.
