Track MRR growth

Get fast answers about the health of your revenue with rapid MRR analysis.

Analytics Challenge

Business Challenge

KPI Impact

Analytics Challenge

Monthly Recurring Revenue (MRR) should be a simple analysis, but it’s notoriously tricky to assess accurately.

New promotions, customer segments, retention programs, and more make keeping up with the continuously changing factors behind changes in MRR more complicated than one dashboard can track. And when you need to quickly understand why your MRR is changing, varying contract lengths, discounts, trial accounts, one-time payments, transaction fees, and unpaid invoices make it challenging to diagnose MRR quickly.

MRR

Monthly Recurring Revenue (MRR) is the measurement of the total amount of predictable revenue that a company expects on a monthly basis.

MRR = Σ recurring revenue monthly

Analytics Challenge

Monthly Recurring Revenue (MRR) should be a simple analysis, but it’s notoriously tricky to assess accurately.

New promotions, customer segments, retention programs, and more make keeping up with the continuously changing factors behind changes in MRR more complicated than one dashboard can track. And when you need to quickly understand why your MRR is changing, varying contract lengths, discounts, trial accounts, one-time payments, transaction fees, and unpaid invoices make it challenging to diagnose MRR quickly.

Business Challenge

MRR is a board-level metric many companies use to measure the health of subscription revenue. Understanding how it changes over time allows a business to forecast and plan accordingly.

While businesses also measure revenue on an annual (ARR) and even quarterly (QRR) basis, measuring recurring revenue monthly provides a more detailed look at how revenue is changing, giving you the time to make adjustments before the window of opportunity closes.

Automating MRR analysis helps you keep ahead of how new experiments, new customers, new pricing, and more impact your business. Armed with these insights, a business can intervene early to accelerate MRR growth.

KPI Impact

Not only is MRR a great leading metric for revenue attainment, it’s also a useful tool for forecasting revenue growth. Small changes in MRR can have a compounding effect in many businesses as customers join (and leave).

For example, imagine a subscription business with 100,000 customers, growing at 1% month over month. At an average of $50 per customer, per month:

    100,000 customers = $5M MRR
    + 1,000 new customers = +$50K/month
    Annual growth = +$3.9M (6.5%)

But, finding a way to increase customer MRR by only 1% per month can add another $4.4M in revenue over a year. That’s 14% growth year over year.

Factors to include when analyzing MRR

Answer why MRR is changing faster by tracking MRR at the account or customer level. Each row should represent a unique customer, with one record per subscription period.

When setting up your data, make your datasets as wide as possible. Start with the recommended fields below and add as many descriptive variables as you can to augment your analysis.

Schema Blueprint:

  • One row per customer
  • One record per month
  • Metric field =
    Subscription Value

Recommended

Account ID

Product SKU(s)

Calendar Month

Customer Acquisition Date

Customer Tenure (months)

Customer Tiering

Customer Age

Customer Income

Customer City, State, Zip

Optional

Coupon / Discount Code

Discount Amount

Product Category

Product Type

Email Engagement

Customer First Product

Customer Average Discount

CSAT

Customer Success Tickets

Schema Blueprint:
  • One row per customer
  • One record per month
  • Metric field =
    Subscription Value
Recommended

Account ID

Product SKU(s)

Calendar Month

Customer Acquisition Date

Customer Tenure (months)

Customer Tiering

Customer Age

Customer Income

Customer City, State, Zip

Optional

Coupon / Discount Code

Discount Amount

Product Category

Product Type

Email Engagement

Customer First Product

Customer Average Discount

CSAT

Customer Success Tickets

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See why Housecall Pro uses Sisu to diagnose MRR, faster.

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