In SaaS businesses, you see a lot of acronyms. This article focuses on two specific acronyms: ARR and NR. They are often used in the same context but have very different meanings. I’ll cover the differences between ARR and NRR, what each metric means, and why they’re important. ARR stands for annual recurring revenue. NRR […]
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Net revenue retention (also known as the net retention rate or NRR) is a commonly used metric in SaaS companies to measure a combination of customer retention and upsell/cross-sell effectiveness with existing accounts. The net retention rate is expressed on a percentage scale relative to revenue. It is defined as follows: Net Retention Rate =
How Net Revenue Retention Can Make or Break Your SaaS Business Read More »
An ideal customer profile, or ICP, defines the type of customer who is unusually well suited to buy your offering, have long-term retention, pay premium prices, be highly satisfied, and be very profitable for you. You’ll often see the ideal customer profile referenced by its abbreviation, ICP. You’ll also hear the term “buyer persona” used
3 Steps to an Ideal Customer Profile [SaaS] Read More »
In this article, I’ll define net revenue retention, show you how to calculate it, explain why it’s important, and show you how to use it to manage your SaaS company. What Is Net Revenue Retention in SaaS? Net revenue retention (NRR) is a key performance indicator that measures the combination of two things: How well
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Customer lifetime value is a metric that adds up all the sales expected from a customer over the lifespan of their relationship with your company. This metric is abbreviated as CLV or LTV. CLV is extremely useful in businesses that have subscription billing models and/or high repeat-purchase rates. What Is LTV in SaaS? In SaaS, lifetime value
The Incredible Impact of Customer Lifetime Value in SaaS Read More »
