{"id":1702,"date":"2022-06-24T12:02:31","date_gmt":"2022-06-24T10:02:31","guid":{"rendered":"http:\/\/chartmogul.com\/?p=1702"},"modified":"2023-08-10T16:36:16","modified_gmt":"2023-08-10T14:36:16","slug":"choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade","status":"publish","type":"post","link":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/","title":{"rendered":"Choose How You Classify 100% Discounts; Downgrade and Churn"},"content":{"rendered":"<p><b>Update: T<\/b><b>his feature was previously only available for Stripe, Chargebee, Recurly, and Braintree. It\u2019s now available for new customers with any billing source. We will enable this data setting for current customers with other billing integrations over the next few weeks. <\/b><a href=\"mailto:support@chartmogul.com\"><b>Get in touch<\/b><\/a><b> if you want us to switch it on for you now.\u00a0<\/b><\/p>\n<p>When a paying subscriber is given a 100% discount, or moved from a paid plan to a free plan, their Monthly Recurring Revenue (MRR) drops to $0. \u00a0But is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?<\/p>\n<p>ChartMogul\u00a0customers are divided on how we\u00a0should classify these events &#8211; and the decision always\u00a0depends on\u00a0the specific\u00a0dynamics of each business.<\/p>\n<p>Currently we&#8217;re classifying these events as\u00a0downgrades rather than\u00a0churn. \u00a0Therefore, customer churn rate isn&#8217;t currently being impacted by these events, although MRR churn rate is.<\/p>\n<p>When there&#8217;s no universal way of doing something\u00a0the best thing\u00a0we can do is provide you with the option. \u00a0So today we are releasing a new switch you&#8217;ll find under <strong>Admin<\/strong> &gt; <strong>Data settings<\/strong> &gt; <strong>Free customer handling<\/strong>:<\/p>\n<p><a href=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1705 aligncenter\" src=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling.png\" alt=\"free customer handling\" width=\"648\" height=\"87\" srcset=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling.png 1400w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling-300x40.png 300w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling-1024x138.png 1024w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling-720x97.png 720w, https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/free-customer-handling-300x40@2x.png 600w\" sizes=\"auto, (max-width: 648px) 100vw, 648px\" \/><\/a><\/p>\n<p>Please note: if you do select the second option, customers who are moved from a paid plan to a free plan, or are given a 100% discount, will start to impact your customer churn numbers and will stop impacting your downgrade\/contraction numbers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update: This feature was previously only available for Stripe, Chargebee, Recurly, and Braintree. It\u2019s now available for new customers with any billing source. We will enable this data setting for current customers with other billing integrations over the next few weeks. Get in touch if you want us to switch it on for you now.\u00a0 &hellip;<\/p>\n","protected":false},"author":4,"featured_media":1722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-1702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pricing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Classify 100% Discounts, Downgrade and Churn | ChartMogul<\/title>\n<meta name=\"description\" content=\"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Classify 100% Discounts, Downgrade and Churn | ChartMogul\" \/>\n<meta property=\"og:description\" content=\"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\" \/>\n<meta property=\"og:site_name\" content=\"ChartMogul\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/chartmogul\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-24T10:02:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-10T14:36:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"300\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nick Franklin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Nick_Franklin\" \/>\n<meta name=\"twitter:site\" content=\"@chartmogul\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nick Franklin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\"},\"author\":{\"name\":\"Nick Franklin\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/6b83cb75c842d51f571cac6899f78790\"},\"headline\":\"Choose How You Classify 100% Discounts; Downgrade and Churn\",\"datePublished\":\"2022-06-24T10:02:31+00:00\",\"dateModified\":\"2023-08-10T14:36:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\"},\"wordCount\":237,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg\",\"articleSection\":[\"Pricing\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\",\"url\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\",\"name\":\"Classify 100% Discounts, Downgrade and Churn | ChartMogul\",\"isPartOf\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg\",\"datePublished\":\"2022-06-24T10:02:31+00:00\",\"dateModified\":\"2023-08-10T14:36:16+00:00\",\"description\":\"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?\",\"breadcrumb\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage\",\"url\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg\",\"contentUrl\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg\",\"width\":720,\"height\":300},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/chartmogul.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Choose How You Classify 100% Discounts; Downgrade and Churn\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#website\",\"url\":\"https:\/\/chartmogul.com\/blog\/\",\"name\":\"ChartMogul\",\"description\":\"Get all your SaaS &amp; Subscription Metrics with a Single Click! MRR, churn, LTV and much more.\",\"publisher\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/chartmogul.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#organization\",\"name\":\"ChartMogul\",\"url\":\"https:\/\/chartmogul.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2019\/05\/ChartMogul-Logo.png\",\"contentUrl\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2019\/05\/ChartMogul-Logo.png\",\"width\":278,\"height\":52,\"caption\":\"ChartMogul\"},\"image\":{\"@id\":\"https:\/\/chartmogul.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/chartmogul\",\"https:\/\/x.com\/chartmogul\",\"https:\/\/www.linkedin.com\/company\/chartmogul\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/6b83cb75c842d51f571cac6899f78790\",\"name\":\"Nick Franklin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-16-at-10.33.51.png\",\"contentUrl\":\"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-16-at-10.33.51.png\",\"caption\":\"Nick Franklin\"},\"description\":\"CEO, ChartMogul\",\"sameAs\":[\"http:\/\/@Nick_Franklin\",\"https:\/\/x.com\/Nick_Franklin\"],\"url\":\"https:\/\/chartmogul.com\/blog\/author\/nick\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Classify 100% Discounts, Downgrade and Churn | ChartMogul","description":"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?","robots":{"index":"index","follow":"follow"},"canonical":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/","og_locale":"en_US","og_type":"article","og_title":"Classify 100% Discounts, Downgrade and Churn | ChartMogul","og_description":"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?","og_url":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/","og_site_name":"ChartMogul","article_publisher":"https:\/\/www.facebook.com\/chartmogul","article_published_time":"2022-06-24T10:02:31+00:00","article_modified_time":"2023-08-10T14:36:16+00:00","og_image":[{"width":720,"height":300,"url":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg","type":"image\/jpeg"}],"author":"Nick Franklin","twitter_card":"summary_large_image","twitter_creator":"@Nick_Franklin","twitter_site":"@chartmogul","twitter_misc":{"Written by":"Nick Franklin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#article","isPartOf":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/"},"author":{"name":"Nick Franklin","@id":"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/6b83cb75c842d51f571cac6899f78790"},"headline":"Choose How You Classify 100% Discounts; Downgrade and Churn","datePublished":"2022-06-24T10:02:31+00:00","dateModified":"2023-08-10T14:36:16+00:00","mainEntityOfPage":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/"},"wordCount":237,"commentCount":0,"publisher":{"@id":"https:\/\/chartmogul.com\/blog\/#organization"},"image":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage"},"thumbnailUrl":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg","articleSection":["Pricing"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/","url":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/","name":"Classify 100% Discounts, Downgrade and Churn | ChartMogul","isPartOf":{"@id":"https:\/\/chartmogul.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage"},"image":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage"},"thumbnailUrl":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg","datePublished":"2022-06-24T10:02:31+00:00","dateModified":"2023-08-10T14:36:16+00:00","description":"When a paying customer is given a 100% discount or is moved to a free plan, is this a downgrade (Contraction MRR) or a cancellation (Churn MRR)?","breadcrumb":{"@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#primaryimage","url":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg","contentUrl":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2015\/06\/100discount.jpg","width":720,"height":300},{"@type":"BreadcrumbList","@id":"https:\/\/chartmogul.com\/blog\/choose-how-to-interpret-discounted-or-free-plan-customers-churn-or-downgrade\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/chartmogul.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Choose How You Classify 100% Discounts; Downgrade and Churn"}]},{"@type":"WebSite","@id":"https:\/\/chartmogul.com\/blog\/#website","url":"https:\/\/chartmogul.com\/blog\/","name":"ChartMogul","description":"Get all your SaaS &amp; Subscription Metrics with a Single Click! MRR, churn, LTV and much more.","publisher":{"@id":"https:\/\/chartmogul.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/chartmogul.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/chartmogul.com\/blog\/#organization","name":"ChartMogul","url":"https:\/\/chartmogul.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/chartmogul.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2019\/05\/ChartMogul-Logo.png","contentUrl":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2019\/05\/ChartMogul-Logo.png","width":278,"height":52,"caption":"ChartMogul"},"image":{"@id":"https:\/\/chartmogul.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/chartmogul","https:\/\/x.com\/chartmogul","https:\/\/www.linkedin.com\/company\/chartmogul\/"]},{"@type":"Person","@id":"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/6b83cb75c842d51f571cac6899f78790","name":"Nick Franklin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/chartmogul.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-16-at-10.33.51.png","contentUrl":"https:\/\/chartmogul.com\/blog\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-16-at-10.33.51.png","caption":"Nick Franklin"},"description":"CEO, ChartMogul","sameAs":["http:\/\/@Nick_Franklin","https:\/\/x.com\/Nick_Franklin"],"url":"https:\/\/chartmogul.com\/blog\/author\/nick\/"}]}},"_links":{"self":[{"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/posts\/1702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/comments?post=1702"}],"version-history":[{"count":10,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/posts\/1702\/revisions"}],"predecessor-version":[{"id":20076,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/posts\/1702\/revisions\/20076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/media\/1722"}],"wp:attachment":[{"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/media?parent=1702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/categories?post=1702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chartmogul.com\/blog\/wp-json\/wp\/v2\/tags?post=1702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}