General Metrics
Posted: Mon Mar 10, 2025 11:18 am
Explanation of each metric:
- Customer Retention Rate: Measures the percentage of customers who remain with a company over a specific period.
- Customer Lifetime Value (CLV): Represents the total revenue a company expects to generate from a customer throughout their entire relationship.
- Revenue Churn Rate: Indicates the percentage of revenue lost due to customer churn.
- Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer.
- Average Revenue Per User (ARPU): The average revenue generated per active user.
- Renewal Rate: The percentage of customers who renew their subscriptions.
- Gross Revenue Retention: Similar to NRR, but does not account for customer expansion, only measuring the revenue retained from existing customers without considering upsells or cross-sells.
- Net Promoter Score (NPS): A measure of customer loyalty based on how likely customers are to recommend a company to others.