This is a significant indicator for subscription platforms. MRR is the price paid by visitors per month of using the program.
Calculation formula:
MRR = number of clients * average revenue per client for a given period (ARPU).
Based on MRR, regular income for the year industry email list is determined. To do this, the resulting value is multiplied by 12.
You can view MRR information:
- in regular financial statements;
- in customer payment statements;
- in the CRM system.
The metric is used in SaaS projects that offer software by subscription. It allows you to compare the profit received from customers with the costs of attracting them.
Churn Rate
This metric shows how many users stopped being clients of the company during a specific period, for example, refused service.
The formula for calculating Churn Rate is:
Churn Rate = [(number of customers at the beginning of the period – number of customers at the end of the period) / Number of customers at the beginning of the period] * 100%.
Bystatistics, the average Churn lead generation agency Rate is 2-8%. A rate of up to 2% of MRR is considered low. Moreover, the younger the company, the more often customers leave it.
If the Churn Rate is negative, it may indicate that the number of customers increased at the end of the period.
How to find out Churn Rate?
To analyze customer churn, you can use cohort analysis.
Churn Rate is important for a business that relies heavily on repeat customers for most of its revenue. If the rate is poor, it’s worth looking at competitors’ offers and finding out why customers are no longer cooperating with the company.
Revenue Churn Rate
The metric shows how much money a business loses as a result of customer churn.
Calculation formula:
Revenue Churn = (revenue lost during the period / revenue at the beginning of the period) * 100%.
Ideally, the indicator should be minimal.
Market Share (SOM)
The indicator means the real possible it email list market volume. It displays the market share of a certain company relative to competitors.
The formula used for calculation is:
SOM = (firm sales / total market sales) * 100%.
Taking into account the indicator, you can look for the reason for the decline in sales, for example, seasonality, the arrival of stronger competitors on the market.