Retention, churn & expansion · Core
Contraction
Also called: downgrade
ELI5
Reduction in recurring revenue from an existing customer without complete churn.
Used in conversation
“How are we defining contraction in this deck?”
Pitch context
You will see “Contraction” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches retention, churn & expansion.
Why it matters: It helps a reader interpret retention, churn & expansion without confusing the measure, decision, role or evidence being discussed.
Sources & evidence · 2
Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.
- U.S. Small Business Administration — Write your business planSupporting source family · primary · checked 2026-08-16
- IFRS Foundation — IFRS GlossarySupporting source family · primary · checked 2026-08-16