Churn docs #1378
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Churn docs #1378
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August 9, 2020 09:29
dadlerj
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Aug 10, 2020
handbook/sales/index.md
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| @@ -47,6 +47,10 @@ Expansion [IARR](#iarr) is IARR from *existing customers* (i.e., organizations t | |||
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| If within a single period a new customer signs a contract which then grows in ARR before the end of the period, the total ending ARR is all considered [new IARR](#new-iarr), not expansion IARR. For example, if Acme Corp signs a $100k contract on February 3 and then the contract expands to $200k on March 5, all $200k would be considered new IARR for Q1. | |||
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| ### Churned IARR | |||
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| The amount of [IARR](#iarr) that is lost when a customer discontinues using Sourcegraph. | |||
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I'm not sure if "churned" is the right word here. In some cases, customers will simply use less of Sourcegraph in a subsequent period and pay less as a result (e.g. a smaller renewal). That is "negative expansion", but not really churn (as defined here). Would that be included? Do we need a more expansive definition? Or even a separate term at all here?
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@dadlerj thanks for the comments. I'm proposing adding contraction and cancelled IARR terms to represent decreases in IARR from one period to the next. In practice these will be infrequently used now but we've had a couple cases where we need a term for this. cc @sqs Based on GItLab's framework |
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@dadlerj @juliasourceress anything else we need to add for churn?
I added the process to the sales doc while it's being decided which team will own renewals.