What is Reactivation MRR? 

Reactivation MRR is defined as the monthly recurring revenue gained from customers who were previously lost but have since been regained and the subscription renewed. 

SaaS reactivated MRR can be divided into two revenue streams: new MRR and extended MRR, which helps offset customer acquisition costs by leveraging existing customer relationships.

SaaS reactivation MRR is calculated in the following manner:

1. Start by setting a period you want to monitor. 

2. Identify all of the customers that have churned, but were regained within that timeframe.
3. Determine the MRR value for each of the reactivated accounts at the moment of their return. 
4. Use the following formula to calculate reactivation MRR: 

Reactivation MRR = Σ (MRR of each reactivated customer). 

例：

if you had two customers reactivate: one at $100 MRR and another at $150 MRR, your Reactivation MRR would be $250 ($100 + $150).  

Tracking the reactivation MRR of your SaaS business can help: 

• determine the level of effectiveness of your revenue recovery strategy and customer engagement techniques. 
• actively participate in revenue growth by recapturing lost gains and reconnecting with high-value customers who previously churned. 
• understand if your reactivation campaigns are working and improve them.

Here is how reactivation churn compares to other MRR types: 

Churn is a complex indicator, and it can unfold different perspectives connected to reactivation MRR.

Churn limits the number of customers that can be reactivated. The higher the churn rate is, the greater the reactivation efforts must be.

Thus, considering your churn rate as a pause rather than a permanent loss is an important factor in developing your revenue recovery strategies. 

However, if your churn rates continue to grow, you may need to consider that product issues may exist, and they may be the root cause for customers choosing to leave.

SaaS companies can employ the following reactivation strategies: 

• 最適化 価格戦略 and adapting to 課金モデル that fit the purchasing patterns of their customer segments
• Introducing referral programs
• 提供 無料トライアル or access to premium features
• 実装 アップセル または クロスセル
• Specifically addressing customer pain points.

When monitoring reactivation MRR, SaaS businesses can: 

• confuse reactivate revenue with new customer revenue; doing so, your acquisition cost calculations will no longer show the real image. 
• undermine the importance of 顧客セグメンテーション; a thorough analysis of your customers and the reasons why they decided to reactivate their accounts. 
• miscalculate the churn rate; this could lead to inaccurate views of reactivation success and alter your understanding of the growth rate.