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Subscription business, as its definition suggests, is based on a long-lasting relationship between you and your customers. Maintaining this relationship is then crucial for the increase of your revenue and your company’s successive growth. It is also no secret that acquiring new customers is much more costly than keeping the existing customer base. Putting all of this together, it becomes obvious why retention is one of the most significant metrics that you must regularly monitor. Retention report indicates how much of a certain asset (customers, subscriptions, MRR) remained active over time. Here you can see that retention of new users...
From time to time I keep hearing business owners ask: how come my competitor managed to increase their client base a few times faster than me, even despite having a very similar offering? Of course, there might be at least several reasons for such a dynamic growth, but more often than not the secret lies in making well-calculated investments focused around marketing and sales processes. Lifetime Value (LTV) is the factor that can help you prepare such an effective strategy. In a nutshell: Lifetime Value determines how much money you can expect from a single customer throughout their entire lifespan...
Business owners go nuts whenever the word “Churn” is mentioned, but who can blame them when it basically means that something important has been lost. And who likes to lose anything? Okay, maybe a little weight, but definitely not a customer, revenue or a subscription. However, one thing to realize is that burying your head in the sand never makes the problem disappear. The sooner you face up to the problem, the better – but, you have to know your enemy well before you can effectively defeat it. Churn vs churn rate Surprisingly, the term “Churn rate” is actually more...
When running a company based on a subscription billing model, it is necessary to consider the costs required to attain a single customer, and maintain your total client base. Average Revenue Per User is a report giving you a clear insight about the potential recurring income from each client that subscribes to your services. Keeping tabs on this metric will help you adjust your business tactics accurately. In other words: Average Revenue Per User (ARPU) is a metric that explains how much monthly income you may expect from an average customer. Obviously, it means that you want your ARPU to...
Monthly Recurring Revenue (MRR) is by many regarded as the lifeblood of a subscription-based business. But, even though nearly every web hosting service is offered in a subscription model, not all companies are fully aware of the significance that this report has, or how to scale its figures up. For a SaaS business, it is usually the only thing that people at the top are interested in. It is basing on MRR that you can calculate other powerful metrics defining the general condition of your business, including the Average Revenue Per User (ARPU), Customer Lifetime Value or Revenue Churn. Why...
