Expansion to Contraction Count Ratio

Expansion-to-Contraction Count Ratio is the same comparison as its dollar cousin, but by customer count — the number of accounts that expanded divided by the number that contracted. It measures how widespread up-tiering is across your base, independent of deal size.

Where the dollar ratio can be swung by one large upgrade, the count ratio cannot. A high count ratio means many customers are growing; a low one means expansion, however large in dollars, is concentrated in a handful of accounts.

Divide the number of accounts that expanded by the number that contracted in the period. Ten expansions against four contractions is a 2.5× count ratio. Count accounts once regardless of how many times they moved, or a single volatile account distorts the picture.

Read it beside the dollar ratio: when counts are healthy but dollars are not, your expansions are small and your contractions are large — a subtler risk than either number alone reveals.