All PLG 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 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.
Churn by Customer Segments
This metric measures the percentage of churn for different customer segments, such as new customers, long-term customers, or customers with a specific plan or feature. It helps companies identify the segments that are more likely to churn and take appropriate measures to prevent churn.
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 Churn Rate
This metric measures the percentage of customers who have canceled their subscription or not renewed their contract over a specific period. Customer churn rate = (number of customers lost during a period / total number of customers at the beginning of the period) x 100.
