What’s the Impact of This Customer Downgrade Scenario?

In episode #239, I’m addressing a reader's question. Thanks, John! Here’s the scenario.

• The customer books an annual contract at $24K ARR / $2K MRR.
• In Month 6, they are unhappy with the service and want to leave.
• The sales rep convinces them to stay and signs them up for a $12K ARR / $1K MRR contract. In addition, the sales rep convinces them to extend service for another 12 months starting at month 6.

Do we count this as churn? Do we count this as a downgrade? What is the downgrade amount?

Find out how this impacts bookings and retention.

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