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2023-05-09T09:59:34Z

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What is Involuntary Cancellation MRR metric report?

What is Involuntary Cancellation MRR metric report? 

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 monthly recurring revenue lost from involuntarily cancelled subscriptions. Note that cancellations within the same month of activation are not included.

Solution

Why Involuntary Churn?

Involuntary churn happens when a customer cannot continue using a service for reasons partially or entirely out of their control, mostly related to payment processing issues.

Involuntary Cancellation MRR = Total MRR lost from subscriptions cancelled due to involuntary reasons.
This metric helps to understand the MRR lost from canceled subscriptions due to payment failures. It can happen for the following reasons:

  • Payment failures due to card expiration, bank declines, or no card available.
  • Other reasons could be non-compliant customers, tax calculation failures, and so on.

Chargebee uses the values of cancel_reason for classifying churn as voluntary or involuntary. If the cancel_reason has one of the possible values (not_paid, no_card, fraud_review_failed, non_compliant_eu_customer, tax_calculation_failed, currency_incompatible_with_gateway, non_compliant_customer), Chargebee classifies this as an Involuntary Churn.
For more information, refer to the API documentation.

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 (Involuntary Churn): [10X10] = $100

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