### Metrics

Annual Contract Value

ACV is the average annualized revenue per customer contract. If you compare Annual Contract Value to Customer Acquisition Cost, you can see how long it takes to pay back the cost of acquiring a customer.

Annual Run Rate

ARR is your monthly recurring revenue (MRR) annualized. It is a prediction of how much revenue your company will generate annually based on your current MRR.

Average Contract Length

ACL is the average length of a customer contract. To surface it you need to add the total number of contracts in months, you will then divide by the entire number of contracts to get your average contract length figure.

Average Revenue Per Account

ARPU is the average amount of revenue you earn from each of your active accounts monthly. Notice that ARPU is calculated based on active accounts, not total accounts.

Average Revenue Per User

ARPU is the average amount of revenue you earn from each of your active customers monthly. Notice that ARPU is calculated based on active customers, not total users.

Average Revenue Per User

ARPU is the average amount of revenue you earn from each of your active customers monthly. Notice that ARPU is calculated based on active customers, not total users.

Churn MRR

Churn MRR is the percentage of revenue lost during a given period (usually monthly). It includes revenue lost from cancelled customers, downgrades, and other lost monthly revenue.

Committed Monthly Recurring Revenue

CMRR is the value of the recurring portion of subscription revenue. For term-based subscription businesses, this is the portion of subscription revenue that is recognized each month.

Conversion rate

Customer go through various milestones and stages in the funnel. The conversion rate is the percentage of users who go from one stage to the next. Divide the number of users in the current stage by the total number of users in the previous stage.

Customer Acquisition Cost

CAC is the amount of money you spend to acquire a new customer. To calculate CAC, divide all the expenses to acquire customers by the total number of customers acquired over a certain period of time.

Customer Lifetime Value

CLV is an estimate of how much revenue will be generated from an average customer before churn. It is calculated by dividing the average monthly MRR per customer with User Churn Rate.

Daily Active Accounts

DAA are the number of users who open your product every day. Once you define what an active user is, you just need to measure how many number of them meet that threshold on a daily basis to determine your DAA.

Daily Active Users

DAU are the number of users who open your product every day. Once you define what an active user is, you just need to measure how many people meet that threshold on a daily basis to determine your DAU.

Feature usage

This is the percentage of users who use a particular product features. To get feature usage over a certain period of time, divide the number of users who used a feature by the total number of users.

License utilization

License utilization is the ratio of active-users in an account and the total number of licenses purchased. It is an important metric for solutions that offer a seat-based pricing model.

License utilization

License utilization is the ratio of active-users in an account and the total number of licenses purchased. It is an important metric for solutions that offer a seat-based pricing model.

Monthly Active Accounts

MAA are the number of accounts who open your product in a month. Once you define what an active account is, you just need to measure how many number of them meet that threshold on a monthly basis to determine your MAA.

Monthly Active Users

MAU are the number of users who open your product in a month. Once you define what an active user is, you just need to measure how many people meet that threshold on a monthly basis to determine your MAU.

Monthly Recurring Revenue

MRR is the amount of revenue you get from your customers on a monthly basis. The basic calculation for MRR is simple. You just add up all the revenue you get from your active customers.

Net promoter score

NPS shows how likely customers are to recommend your product. NPS is calculated by first surveying customers on how likely (1-10) they are to recommend the product. You then subtract the percentage of detractors from the promotersâ€™.

New MRR

New Monthly Recurring Revenue is a metric that focuses of the revenue gained from new customers.

New customer growth rate

New customer growth is the number of new customers a company acquires. NCGR is measured by taking the difference in customers from one period to the previous one, then dividing by the number of customers in the previous period.

Number of sessions

This measures how often users use the product in a given period of time. It gives insights into stickiness. If the number of active users or number of sessions is low, then the product is not capturing user needs.

Retention Rate

Retention rate is the percentage of customers active in a given period who are still customers in the next. To get it, divide your number of active users across a period by the number of users in the previous period.

Session length

It measures how long a user typically uses a product at a time. To get it, calculate the session length for all sessions by subtracting the start time from the end time. Then take the average within each period.

Time to Value

Time to Value (TTV) is the amount of time it takes a new customer to experience value from your product.

Total Contract Value

TCV is the lifetime value of a contract. It shows how much your business can expect to earn from a customer once contract is signed. You need to multiply the MRR with the contract term length.

Weekly Active Accounts

WAA are the number of users who connect to your product in a week. Once you define what an active user is, you just need to measure how many number of them meet that threshold on a weekly basis to determine your WAA.

Weekly Active Users

WAU are the number of users who connect to your product in a week. Once you define what an active user is, you just need to measure how many people meet that threshold on a weekly basis to determine your WAU.