What is Voluntary Cancellation MRR metric report?

Modified on: Wed, 21 Jun, 2023 at 12:45 PM

Scope

How do I export a report of the customer subscriptions cancelled due to dunning?

What are the voluntarily cancelled subscriptions on Chargebee?

Does the voluntary churn report include cancellations that were activated the same month?


Summary

This report provides the monthly recurring revenue lost from voluntarily cancelled subscriptions. Note that, cancellations within the same month of activation are not included. This metric helps to evaluate product offerings, plan pricing, and the onboarding experience. It can be used to understand voluntary churn, wherein dissatisfied customers cancel their subscriptions due to a perceived lack of value.

Solution

Chargebee uses the values ofcancel_reasonfor classifying churn as voluntary or involuntary. Chargebee classifies this value as a Voluntary Churn if the Cancellation Reason is unavailable. Refer to the API documentation for more information.

Why Voluntary Churn?
Voluntary churn happens when customers leave because they are no longer happy with the product, its features, or its pricing.

Voluntary Cancellation MRR = Total MRR lost from subscriptions canceled due to voluntary reasons.

Example: In a given period, 15 customers on a $10 per month plan churned voluntarily, and ten on a similar plan churned involuntarily.
Cancellation MRR (voluntary churn): [15X10] = $150

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