Eliminating the unknown and replacing it with data
Know your metrics
While all companies, regardless of the nature of the product sold are faced with churn, it is important to be constantly aware of the existing churn rate to better plan and apply your expansion strategy.
MRR looks at the number of your customers, the subscription amount, the billing period and breaks your recurring revenue into a monthly amount. This simplifies things greatly because it allows you to have a segmented view upon your business over the course of a year.
An essential metric in determining whether or not you are successful is CAC, short for Customer Acquisition Cost. By means of this metric, you will be able to determine if what you are paying to gather customers is above or under what you are gaining.
So, no, it’s not a new type of video games. ARPU, short for average Revenue Per User, is a very serious, important metric that all business owners need to be aware of.
By means of LTV, we are actually measuring the lifetime value of our product, more specifically, the predicted amount of time a customer will spend using your product throughout your entire relationship.