Conversion Rate

Conversion rate = (Paying Customers) / Leads

Monthly Recurring Revenue - MRR

All of your recurring revenue normalized into a monthly amount. It’s a metric usually used among subscription and SaaS companies.

ARR

• Annual Recurring Revenue(ARR) is a key metric used by subscription-based SaaS companies using term-based agreements.
• ARR normalizes the contracted recurring revenue components of term subscriptions to a one-year period.
• An alternative to monthly recurring revenue MRR, ARR is used almost exclusively in B2B subscription businesses with multi-year agreements to help financial leaders understand their annual revenue and visualize company growth year over year.

Customer Lifetime Value (CLV)

• How much is an average new customer value to your business?
• Customer lifetime value (CLV or CLTV) is a metric that indicates the total revenue a business can reasonably expect from a single customer account throughout the business relationship.

• Customer lifetime value is more valuable as a metric when you calculate its ratio to customer acquisition cost (CAC).

• How to calculate?

Find Average Revenue Per Customer and then Average duration customer stays with you

Metrics