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Impact on MRR due to one-off coupons
MRR value dipped with downgrades
MRR value different from revenue story and subscription level
Description
The one-off recurring coupons applied by your customer may result in “downgrades” while calculating MRR. The difference in a certain amount depends on your subscriptions and the coupon code usage.
For example, if a one-off coupon code of $20 is applied to an $800 plan and used by 500 of your customers then, the total MRR metric might dip to a value say, $1500.
When the MRR breakdown is downloaded for revenue story, the value might show a $60 while the accurate amount anticipated might be $65.
This is because the coupon added to the subscription could be scheduled for the next renewal period. i.e. For example, If the coupon was added to the subscription on 15th March, the next renewal will be on 14th April. This means that the renewal is considered to be a recurring item for the MRR calculation and therefore, there is a reduction in MRR.
Note
One-time coupons are considered to be a part of the MRR calculation if the coupon is applicable for the next renewal of the subscription irrespective of the coupon type used.
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