It is important to understand the differences between these values. That is why the amount we add is called MRR for new sales and the number we subtract is known as churn MRR .
We must show these segmented numbers to the team so that everyone has a visualization of the strengths and weaknesses of the process.
Calculating average earnings
Another important metric is average revenue, and it is directly related to your MRR. Average revenue is also known as ARPU , which stands for Average Revenue Per User .
It is thanks to this value that the main drivers of growth, as well as its barriers, can be analysed. To find out the average revenue, it is enough to divide the total profits generated in sales by the number of customers in a given period.
One of the most important reasons that encourages philippines phone number list calculating MRR is to identify how much you are earning in order to create actions and strategies to increase it .
To prevent this indicator from becoming frustrating for you, we have selected some tips to show you how to increase your MRR. Check them out!
1. Customer loyalty
The famous Philip Kotler already stated that acquiring a new customer costs 5 to 7 times more than keeping an existing one. Also, when we showed you how to calculate MRR, it became clear how your churn rate impacts your monthly recurring revenue, right?
This proves the importance of having customer loyalty in your strategic planning . You must understand why your customers use and maintain their subscription to your services . This way, the customer success team can work with a focus on these strengths of your solution.
There are thousands of actions that can be taken to retain your customer . You must understand which is the best option for your business. However, the most important thing is to work so that your customers and users are successful with your business.
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