MRR Customer Rollforward Table

For founders and CFOs of subscription-based businesses this comprehensive metrics package provides the clarity and control you need to optimize financial performance, understand customer dynamics, and drive sustainable growth.

Benefits

1.Simplify Revenue Complexity Break down your Monthly Recurring Revenue (MRR) into actionable components, including growth, churn, and customer acquisitions, to uncover key drivers of success.

2. Understand Customer Behavior Gain a full view of customer retention, growth, and overall base changes with metrics designed to help you optimize acquisition strategies and reduce churn.

3. Benchmark Customer Value Leverage Average MRR and ARR per Customer to assess and improve the financial value of your customer base across any subscription model.

MRR Key Metrics

MRR : Monthly Recurring Revenue

Track how revenue changes over time with granular metrics:

• BOP: MRR at the start of the period.
• Increases: Additional revenue from existing customers (upselling, expansions).
• Decreases: Revenue reductions from downgrades or partial churn.
• Lost: Revenue lost due to churned customers.
• New: Revenue acquired from new customers.
• EOP: MRR at the end of the period.

Customers:

Understand how your customer base evolves with:

• BOP: Number of customers at the beginning of the period.
• Lost: Customers lost to churn.
• New: Customers gained during the period.
• EOP: Total customers at the end of the period.

Derived metrics to track performance include:

• Customer Retention: Measure how well you’re keeping your customers.
• New Customer Growth: Monitor the rate of customer acquisition.
• Total Customer Change: Assess overall net growth or contraction.

Average MRR per Customer

• BOP (Beginning of Period): Analyze the revenue contribution of each customer at the start of the period by dividing the MRR by the number of customers. This metric serves as a baseline to evaluate revenue changes throughout the period.

• Lost: Identify the revenue impact of lost customers by calculating the average MRR of those who churned. This helps pinpoint the value of customers you're losing and informs retention strategies.

• New: Measure the revenue quality of newly acquired customers by dividing new MRR by the number of new customers. This provides insights into the effectiveness of your acquisition strategy in targeting high-value customers.

• EOP (End of Period): Evaluate the overall health of your customer base by calculating the average MRR per customer at the end of the period. This metric reflects the combined impact of retention, churn, and expansion.

Average ARR Per Customer

• BOP (Beginning of Period): Understand the annualized revenue contribution per customer at the start of the period, offering a long-term view of customer value.

• Lost: Calculate the average ARR of lost customers to assess the financial impact of churn on your business's recurring revenue model.

• New: Determine the annualized revenue potential of newly acquired customers by dividing new MRR by new customers and extrapolating to ARR. This metric highlights the quality of growth in terms of long-term revenue.

• EOP (End of Period): Measure the annualized average revenue per customer at the end of the period to gauge the effectiveness of your overall growth and retention strategies.