Revenue
Expansion MRR
Definition of
Expansion MRR refers to the monthly recurring revenue generated when existing customers upgrade or expand their services with a business. It is an important metric for companies looking to grow their revenue streams and improve customer retention. For example, if a software company offers a basic plan for $50 per month and an upgraded plan for $100 per month, and 50 customers upgrade to the more expensive plan, the expansion MRR would be $2,500 per month. This revenue is in addition to the company's regular MRR from new customers signing up for the basic plan. Businesses can increase their expansion MRR by offering upsells, cross-sells, and personalized recommendations to their existing customers. This not only increases revenue but also strengthens customer relationships and loyalty.
