Docs
Indicates the total number of customers with at least one active paid subscription within a specific period.
Explanation of metric
This metric provides a trend analysis of the total number of customers who have at least one active paid subscription during a specified timeframe. Monitoring this metric helps in tracking customer growth and retention, providing insights into the health of the customer base.
How it's measured
Total Customers = Number of customers with at least one active paid subscription during the specified period.
Reading
An upward trend indicates growth in the customer base, which is generally positive.
Interpretation
Total Customers provides a critical measure of the company's active customer base. An increase suggests successful acquisition and retention strategies, while a decrease may indicate rising churn or challenges in acquisition. Monitoring this metric in conjunction with Average Revenue Per User (ARPU) and Churn Rate helps provide a more comprehensive view of customer and revenue health.
Example
If a business has 1,200 customers with at least one active paid subscription in January and 1,500 in February, the Total Customers metric for January is 1,200, and for February, it is 1,500, indicating a growth of 300 active customers over a month.
Indicates the total number of new customers who subscribed within a specific period.
Explanation of metric
This metric tracks the number of new customers who acquired at least one subscription during a defined timeframe, providing trend analysis for customer acquisition. The subscriptions can be in either an active or trial state. Monitoring new customer growth helps assess the effectiveness of acquisition strategies and the appeal of product offerings.
How it's measured
New Customers = Number of new customers with at least one subscription (active or in trial) during the specified period.
A new customer report will include active subscription when there is no previous MRR and the current period has a MRR greater than 0. A customer is categorized as a new customer only in their first active paid subscription month. They will no longer be classified as a new customer in the following months. A Trial is a subscription that has no associated MRR.
Reading
An upward trend is a positive indicator, showing growth in customer acquisition.
Interpretation
The New Customers metric provides insight into the company's ability to attract new subscribers, reflecting the effectiveness of marketing efforts, brand appeal, and product-market fit. Growth in new customers typically signals successful acquisition strategies, while a decline may suggest a need to reassess outreach and promotional efforts.
Example
Consider a business that acquired 300 new customers with active or trial subscriptions in March and 400 in April. The New Customers metric would be 300 for March and 400 for April, indicating an increase of 100 new customers over a month.
Indicates the total number of new customers who have subscribed to a paid plan with Monthly Recurring Revenue (MRR) greater than zero within a specific period.
Explanation of metric
This metric tracks the number of new customers who acquired a paid subscription, with MRR greater than zero, during a given timeframe. By focusing on paying customers, it helps gauge the effectiveness of strategies aimed at converting new users to paid offerings and generating revenue.
How it's measured
New Paid Customers = Number of new customers with at least one paid subscription (MRR > 0) during the specified period.
A customer is categorized as a new paid customer only in their first active paid subscription month. They will no longer be classified as a new paid customer in the following months.
Reading
An upward trend is a positive indicator of growth in converting new customers to paid subscriptions.
Interpretation
The New Paid Customers metric provides insight into the company's success in attracting and converting new customers to paid offerings. An upward trend indicates effective marketing and sales strategies, while a decline may signal a need to reassess acquisition and conversion tactics.
Example
Consider a business that acquired 150 new paid customers with (MRR > 0) in June and 200 in July; the New Paid Customers metric would be 150 for June and 200 for July, showing an increase of 50 paid customers over a month.
Indicates the increase in Monthly Recurring Revenue (MRR) resulting from customers upgrading to higher subscription plans within a specific period.
Explanation of metric
This metric tracks the additional MRR generated when customers move from lower-tier plans to higher-tier ones during a defined timeframe. It highlights the impact of upselling efforts and customer satisfaction with the offerings, as customers choose higher-value plans. This metric can be compared to the previous period to observe trends in upsell success.
How it's measured
Upgrade - Customer = Total MRR increase from customer upgrades during the specified period, where the subscription MRR is higher than the previous period's MRR.
Reading
An upward trend indicates effective upselling efforts and strong customer satisfaction with existing offerings.
Interpretation
The Upgrade - Customer metric reveals the company's effectiveness in upselling, demonstrating growth in MRR from existing customers upgrading their subscriptions. Regularly monitoring this metric helps evaluate the success of upsell strategies and the perceived value of higher-tier plans. An upward trend reflects customer satisfaction and effective upselling tactics, while a downward trend may indicate the need to adjust offerings or communication around higher plans.
Example
Consider MRR increased by $10,000 due to customer upgrades in Q1 and by $12,000 in Q2, the Upgrade - Customer metric would be $10,000 for Q1 and $12,000 for Q2, showing a $2,000 increase in MRR from upgrades between quarters.
Indicates the decrease in Monthly Recurring Revenue (MRR) resulting from customers downgrading to lower subscription plans within a specific period.
Explanation of metric
This metric tracks the reduction in MRR as customers shift from higher-tier plans to lower-tier ones during a defined timeframe. Comparing it to the previous period provides insight into customer satisfaction and perceived value of higher-tier offerings. It can help identify areas where improvements may be needed to retain customers on higher plans.
How it's measured
Downgrade - Customer = Total MRR decrease from customer downgrades during the specified period, where the subscription MRR is lower than the previous period's MRR.
Reading
A downward trend is a positive indicator, suggesting fewer customers are downgrading.
Interpretation
The Downgrade - Customer metric helps assess the effectiveness of customer retention on higher plans and the perceived value of these plans. An increase in downgrades may indicate dissatisfaction or a mismatch between customer needs and the features of higher-tier plans, suggesting a need for further product refinement or value reinforcement.
Example
If the MRR decrease from downgrades was $5,000 in March and $3,000 in April, the Downgrade - Customer metric would show $5,000 for March and $3,000 for April, reflecting a $2,000 reduction in MRR losses due to fewer downgrades month-over-month.
Indicates the number of customers who cancel all their subscriptions within a specified period.
Explanation of metric
This metric tracks the total number of customers who discontinue their subscriptions during a defined timeframe, providing insight into customer retention and satisfaction levels. Monitoring churn trends helps identify potential issues and highlights the need for engagement and retention strategies.
How it's measured
Churn - Customer = Number of customers who cancel all subscriptions within the specified period.
Reading
A downward trend is a positive indicator, suggesting lower churn and stronger customer retention.
Interpretation
The Churn - Customer metric serves as a critical measure of customer retention. A rising churn rate can indicate issues in customer satisfaction, pricing, or product fit. Regularly tracking this metric can guide targeted improvements in customer engagement, support, and product features to reduce cancellations and improve overall retention.
Example
If 100 customers canceled all subscriptions in January and 120 canceled in February, the Churn - Customer metric would be 100 for January and 120 for February, indicating a 20-customer increase in churn month-over-month.
The total number of customers who have paused their subscriptions within a given period.
Explanation of metric
This metric tracks the count of customers who place their subscriptions on hold, allowing you to gauge customer engagement and identify accounts needing reactivation efforts.
How it's measured
Paused Customer = Total number of customers who paused their subscriptions during the period.
Reading
A lower number of paused customers is good indicator for your business. The higher number of customers in Paused subscription status means you need to spend more effort on customer engagement and adoption.
Example
In a given period:
Total number of customers who paused subscriptions: 3
Paused Customer = 3
Indicates the total Monthly Recurring Revenue (MRR) earned from subscriptions at the customer level within a specified period.
Explanation of metric
This metric measures predictable monthly revenue from active subscriptions at the customer level, offering insights into financial stability and the effectiveness of recurring revenue models. The trend line shows how total MRR fluctuates over time, reflecting customer growth and revenue potential.
How it's measured
Total MRR - Customer = Sum of MRR from subscriptions during the specified period.
Included in Total MRR:
Included in Total MRR (if configured):
Excluded from Total MRR:
Reading
An upward trend indicates growth in predictable revenue, reflecting effective acquisition and retention of paying customers.
Interpretation
The Total MRR - Customer metric is crucial for understanding the stability and growth of recurring revenue streams. By capturing revenue from subscriptions and, if configured, additional charges like one-time coupons or metered services, this metric highlights predictable income levels. Exclusions, such as setup fees and tax, ensure focus on recurring revenue. Monitoring this metric helps assess the health of the subscription business model, with an upward trend indicating strong financial performance.
Example
If the MRR from all subscriptions was $50,000 in Q1 and increased to $55,000 in Q2, the Total MRR - Customer metric would be $50,000 for Q1 and $55,000 for Q2, showing a $5,000 increase in monthly recurring revenue quarter-over-quarter.
Indicates the total value of invoices generated by customers within a specific period.
Explanation of metric
This metric measures the cumulative value of invoices issued to customers during a given timeframe, providing a trend line that shows fluctuations in total billing activity. It includes both recurring and non-recurring invoices, giving a holistic view of billing transactions for the period. Taxes are excluded to focus on the direct billing amount generated.
How it's measured
Total Billing - Customer = Total value of invoices generated by customers during the specified period.
Included in Total Billing:
Excluded from Total Billing:
Reading
An upward trend indicates increased billing activity, reflecting growth in customer transactions and revenue potential.
Interpretation
The Total Billing - Customer metric captures the overall billing activity within a specified period, reflecting both recurring and one-time transactions. This metric is essential for assessing revenue potential and understanding customer billing behavior. An upward trend suggests increased customer activity and revenue opportunities, while a downward trend may indicate reduced transactions or engagement.
Example
If the total value of invoices generated was $75,000 in April and $85,000 in May, the Total Billing—Customer metric would be $75,000 for April and $85,000 for May, indicating a $10,000 increase in billed amounts month over month.
Indicates the total value of invoices generated by customers, excluding credit notes, within a specified period.
Explanation of metric
This metric tracks customer billing activity, with the value of credit notes subtracted from the total invoices. It provides a clearer view of the net revenue generated, excluding any cancellations or adjustments. The trend line reflects the net billing activity after considering credit notes, voided invoices, and exclusions such as taxes and write-offs.
How it's measured
Net Billing - Customer = (Total Invoice Amount) - (Total Credit Notes)
Included in Net Billing:
Excluded from Net Billing:
Reading
A positive trend indicates increased net billing, reflecting higher actual revenue generated.
Interpretation
The Net Billing - Customer metric provides a more accurate measure of invoicing activity by excluding the impact of credit notes, voided invoices, write-offs, and taxes. By focusing on the net revenue generated, this metric helps assess the true billing health of the business, offering insights into actual customer payments and reducing distortions caused by cancellations or adjustments.
Example
If the total invoice amount for a period was $100,000 and credit notes of $10,000 were issued, the Net Billing - Customer metric would be $90,000 for that period. If $5,000 of the invoices were voided and write-offs totaled $2,000, those would be excluded from the calculation, and the net billing would reflect the adjusted figure.
Indicates the net increase or decrease in Monthly Recurring Revenue (MRR) at the customer level, considering overall expansion and contraction within a given period.
Explanation of metric
This metric provides insight into the changes in MRR at the customer level over a specified period, factoring in both expansion activities, such as upgrades, reactivations, and free-to-paid conversions, and contraction activities, such as cancellations, downgrades, and pauses. The trend line illustrates how these factors contribute to the net MRR movement.
How it's measured
Net MRR Growth For Customer = (New MRR) + (Expansion MRR) - (Downgrade MRR) - (Churn MRR)
Reading
An upward trend indicates positive net MRR growth, reflecting successful expansion and retention strategies.
Interpretation
The Net MRR Growth For Customer metric highlights the net movement in MRR from a customer perspective, combining expansion (new subscriptions, upgrades, reactivations) with contraction (cancellations, downgrades, pauses). By tracking this metric, businesses can better understand their growth trajectory, measure the success of retention and upsell strategies, and identify areas needing improvement.
Example
If the New MRR was $10,000, the Reactivations MRR was $2,000, the Upgrades MRR was $5,000, the Free-to-Paid MRR was $1,000, and the Resumed MRR was $500, the total expansion MRR was $18,500. If the Cancellations MRR was $3,000, the Downgrade MRR was $1,500, the Paused MRR was $500, and the Active-to-Trial MRR was $400, the total contraction MRR is $5,400. The Net MRR Growth for the period would be $18,500 (expansion) - $5,400 (contraction) = $13,100.
Summary of the total amount receivable from the invoices at the customer level.
Explanation of metric
This table provides a customer-specific breakdown of the total amount receivable from invoices in POSTED, NOT PAID, and PAYMENT DUE status, allowing businesses to view outstanding amounts per customer.
How it's measured
Receivable Summary - Customer = Total amount receivable generated from invoices for each customer.
Reading
An increase in the Receivable Summary - Customer metric indicates that the total amount receivable from customers is growing, which may be positive in terms of increased sales volume or higher-value contracts. However, it's important to monitor this alongside payment collection to ensure receivables do not accumulate without timely payment.
Interpretation
This metric enables businesses to monitor open invoices at a customer level. It facilitates tracking slow-paying clients and identifying customers with higher outstanding balances. It also helps prioritize follow-ups based on customers with overdue invoices.
Example
In a given period, for Customer A:
Indicates the total value of successful payments received during a specific period.
Explanation of metric
This metric captures the total sum of both recurring and non-recurring payments received within the defined period. It also provides a point-in-time Key Performance Indicator (KPI), which compares the total payments of the current period to the previous period, showing the percentage change across both periods. The trend line illustrates the overall financial flow during the period, helping track payment success.
How it's measured
Total Payments - Customer = Total amount of payments successfully received during the specified period.
Reading
An upward trend indicates increased successful payments, suggesting strong revenue inflows and financial health.
Interpretation
The Total Payments - Customer metric, or Gross Cash Flow, reflects the actual revenue collected from customers during a given period. It is a key indicator of the business's financial health, as it shows how much cash has been successfully received. This metric helps assess liquidity and operational performance, with an upward trend signifying positive financial activity.
Example
In a given period:
Represents the percentage of Monthly Recurring Revenue (MRR) retained during a specified period, from customers who were active at the beginning of the period.
Explanation of metric
This metric tracks the change in MRR from customers who were active at the start of the period. It accounts for revenue lost due to churn and downgrades and revenue gained from upgrades, cross-sells, and expansions. The trend line shows how effectively the business retains and grows its revenue base.
How it's measured
Net Revenue Retention Rate - Customer = (Total MRR in the period / Total MRR at the beginning of the period) × 100
Only MRR from customers who were active at the beginning of the period is considered in the calculation.
Reading
An upward trend indicates that more than 100% of the MRR has been retained or grown, suggesting strong customer retention and expansion.
Interpretation
The Net Revenue Retention Rate provides insight into how well a business retains its existing customers and grows its revenue from them. A rate greater than 100% suggests that the company is not only retaining customers but also expanding its revenue through upsells, cross-sells, or product expansions. A rate below 100% highlights a decline in customer value and may require improvements in retention strategies.
Example
At the start of the period:
At the end of the period:
Articles & FAQ