The Discounts metric measures the amount of revenue lost due to any discounts or promotions offered to customers as a percentage of the total monthly recurring revenue (MRR). This metric helps businesses evaluate the effectiveness and impact of their discount strategies on their revenue. It also provides insights into the pricing and purchasing behaviors of customers and can inform future discounting decisions. We calculate Discounts using all currently "active" and "past due" subscriptions, as well as already "canceled" subscriptions that will end in the future. When calculating the value, we exclude (1) "canceled" trial subscriptions, (2) "canceled" subscriptions from customers currently with "active" or "past due" subscriptions, (3) "canceled" subscriptions that were canceled within the first 31 days after becoming "active," (4) "canceled" subscriptions due to delinquent customers, (5) "canceled" subscriptions with cancellation reason "payment_failed," and (6) "canceled" subscriptions with the latest invoice status different from "paid."
Example: A subscription-based fitness company wants to analyze the effectiveness of their promo codes using the Discounts (from MRR) metric to measure the impact of discounts on Monthly Recurring Revenue (MRR).