Learn the ins and out of a subscription business.


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Customer Lifetime Value CLTV. CLTV, acronym for Customer Lifetime Value, is the amount of revenue, you can reliably predict a customer will generate when they subscribe to- or pay in installments for your service or product.
Average revenue per user or ARPU. ARPU calculates how much revenue an average user or unit is generating. The metric help companies analyze their growth patterns.
Annual recurring revenue or ARR. ARR, or Annual Recurring Revenue, is a metric for the yearly revenue of a contract or a subscription. This makes it an important figure for all businesses selling SaaS (Software as a Service).
Churn rate. Churn or churn rate is a metric describing the number of customers or subscribers who have unsubscribed from your product/service during a given time period. It is mostly used by SaaS companies and subscription businesses.
Monthly recurring revenue or MRR. MRR or Monthly Recurring Revenue, is a metric that measures the predicted recurring revenue in a month. This metric is particularly useful for SaaS companies and one of the reasons to why subscription businesses are so appealing.

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