{
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  "sources": ["ssg:https://framerusercontent.com/modules/a4qKHpM9fS6kWAkzvWYZ/AdcQmr8zKqRrAYrJS0GZ/C3DyW9lrH-2.js"],
  "sourcesContent": ["import{jsx as e,jsxs as t}from\"react/jsx-runtime\";import{Link as r}from\"framer\";import*as n from\"react\";export const richText=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total number of points redeemed by all customers since your Upzelo loyalty program began.\"})]});export const richText1=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"This refers to the strategic process of attracting and gaining new customers for your business, emphasizing the customer acquisition cost (CAC) as a crucial metric. Interestingly, it's often five times more costly to acquire a new customer than to keep an existing one, highlighting the value of focusing on customer retention as well.\"})]});export const richText2=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Annual contract value (ACV) is the average annual revenue that is generated from each customer\u2019s contract excluding any fees. It\u2019s a metric used to measure and track the value of a customer contract over its lifespan. ACV is important for understanding the health and performance of a business, as it can be used to measure customer churn, customer lifetime value, and other key metrics.\"})]});export const richText3=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Annual contract value (ACV) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"ACV can be calculated in a number of ways, but the most common is to simply take the total value of a contract, minus any one-time setup fees and divide it by the number of years in the contract.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Annual contract value (ACV) is:Total Contract Value (excluding one time setup fees) / Total Contract Length (In Years) = Annual Contract Value (ACV)\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things to keep in mind when calculating ACV. First, it's important to only include the value of recurring revenue in the calculation. This means that one-time fees, such as setup fees or installation fees, should not be included. Second, it's important to use the contract term in years, rather than months, as this will provide a more accurate representation of the value of the contract.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If a customer has a contract with you lasting 4-years with a value of $40,000, then the ACV is $10,000.\"}),/*#__PURE__*/e(\"p\",{children:\"$40,000 (Contract Value) / 4 ( Contract length) = $10,000 (ACV)\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Annual contract value (ACV) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"ACV is important because it provides a clear and concise way to measure the value of a customer contract. This metric can be used to track the health of a business and to make decisions about where to allocate resources.\"}),/*#__PURE__*/e(\"p\",{children:\"What is the difference between ACV and ARR?ACV and ARR both measure annualised contract values but there are some key differences between them. ACV typically focuses on a single account contract whilst ARR measures the sum of revenue generated from multiple contracts at the same time.Here\u2019s a simple example:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer 1 is on a $400 annual subscription contract, making their ACV $400\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer 2 is on a $1000 annual subscription contract, making their ACV $1,000\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer 3 is on a $600 annual subscription contract, making their ACV $600Their ARR is the sum of their individual ACV\u2019s. In this case the ARR is $2,000.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"What does ACV mean in SaaS?ACV is the annual contract value (excluding one of fees) for each contract. For SaaS businesses ACV is a useful metric in determining how many customers you need to be able to reach your revenue goals. If you have a low ACV then you will need more customers to be able to generate higher levels of revenue, whilst for companies with a larger ACV they will need less.\"}),/*#__PURE__*/e(\"p\",{children:\"What is a good ACV?There is no one-size-fits-all answer to this question, as the answer will vary depending on the industry and business model. However, a good starting point is to aim for an ACV that is at least double the customer's monthly recurring fee.\"})]});export const richText4=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Annual Recurring Revenue (ARR) is an annualised version of Monthly Recurring Revenue (MRR). That means that all revenue has been \u2018normalised\u2019 to be an annual amount, such as a charge to a customer on a daily basis is multiplied by 365 days.\"})]});export const richText5=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Annual recurring revenue (ARR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is calculated by taking the total recurring revenue from subscription contracts and annualising it by the charging interval, to reach a common representation of the amount, in an annual form.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Annual recurring revenue (ARR) is:ARR = Total of all charges, normalised to annual charges\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"A SaaS subscription business has 10 customers.\"}),/*#__PURE__*/e(\"p\",{children:\"9 of them have a annual contract (12 months) for \\xa31200, that is paid in a monthly bill of \\xa3100 every month. The annualised amount of the 9 invoices to customer is: (\\xa3100 * 12 months) * 9 active customers = \\xa310,800.\"}),/*#__PURE__*/e(\"p\",{children:\"One customer pays a discounted rate of \\xa3500 upfront every 6 months. The annualised amount of the 1 invoice every 6 months to 1 customer is: (\\xa3500 * 2) * 1 active customer = \\xa31000.\"}),/*#__PURE__*/e(\"p\",{children:\"The current ARR for the SaaS subscription business is \\xa311,800.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Annual recurring revenue (ARR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is an important metric for subscription businesses to monitor and understand in order to predict future growth of the business. After compiling and understanding ARR, it\u2019s important to then deep-dive into what\u2019s impacting it, by breaking it down into upgrade ARR, downgrade ARR, new customer ARR and churn ARR.\"}),/*#__PURE__*/e(\"p\",{children:\"After measuring ARR, the ARR growth rate can be easily calculated. A company with a healthy ARR growth rate is typically adding new customers and expanding its reach.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between ARR and MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is a metric that measures the stability and growth of a company's subscription-based revenue on an annual basis. MRR is a metric that measures the same thing but on a monthly basis.\"}),/*#__PURE__*/e(\"h3\",{children:\"What are some common uses for ARR?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is a helpful metric for investors and analysts to assess the health of a subscription business. A company with a healthy ARR growth rate is typically adding new customers and expanding its reach. In contrast, a company with a declining ARR growth rate may be losing customers or failing to attract new ones.ARR can also be used to calculate other important metrics, such as customer lifetime value (CLV) and customer churn rate.\"})]});export const richText6=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Annual Run Rate (ARR), or commonly referred to as Run rate is a metric that measures the amount of money brought in by a company on an annual basis, which is calculated by multiplying the monthly recurring revenue (MRR) by 12. It\u2019s one of the most important metrics to track, as it helps forecast revenue for the year ahead.\"}),/*#__PURE__*/e(\"p\",{children:\"It's a way of measuring a company's performance and is often used as a predictor of future growth.\"})]});export const richText7=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Annual run rate (ARR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"Annual run rate is calculated by taking a company's current revenue and multiplying it by 12.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Annual run rate (ARR) is:ARR = MRR x 12\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things to keep in mind when calculating run rate. First, it's important to use consistent time periods. For example, if you're using quarterly data, make sure to use the same quarter each year. Second, run rate doesn't take into account one-time events that can impact a company's revenue, such as a major product launch.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If a company's monthly recurring revenue is $10,000, their annual recurring revenue would be $120,000 ($10,000 x 12).\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"Why is Annual run rate (ARR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is important to investors because it represents a company's ability to generate profit every year. It shows how much money they can expect to earn from their customers every year after factoring in their expenses and operating costs. This is important because it allows investors to make informed decisions about whether or not they want to invest in a particular business venture based on its financial viability and sustainability over time.\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"How do I calculate my ARR growth rate?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate your ARR growth rate, take the difference between your current ARR and the previous ARR, and then divide it by your previous ARR. For example, if the last time you did this calculation, it was $1,000 and this time it's $1,200:($1,200 - $1,000) / $1,000 = 20%This gives you an ARR growth rate of 20%.\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between ARR and MRR?\"}),/*#__PURE__*/e(\"p\",{children:'ARR stands for \u201CAnnual Run Rate\u201D and is a measure of how much recurring revenue a business makes from its customer base in a year. MRR stands for \"Monthly Recurring Revenue,\" and is a metric that measures how much money the company makes from its existing customers each month.'}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between ARR and revenue?\"}),/*#__PURE__*/e(\"p\",{children:\"ARR is the total recurring revenue generated by a business across one year. Revenue is money generated by a business, this can be across various periods of time.\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"What is considered recurring revenue?\"}),/*#__PURE__*/e(\"p\",{children:\"Recurring revenue is revenue that is generated from an ongoing subscription contract. This can be on a monthly basis or on an annual basis.\"}),/*#__PURE__*/e(\"p\",{children:\"What are examples of recurring revenue?\"}),/*#__PURE__*/t(\"ol\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"There are many types of recurring revenue businesses.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Subscription Boxes (Birchbox).\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Subscribe and Save products (Dollar Shave Club).\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Software as a service (SaaS) companies (Intercom).\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Digital Subscriptions (Spotify).\"})})]}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"What if my company had a one-time event that impacted revenue?\"}),/*#__PURE__*/e(\"p\",{children:\"One-time events, such as a major product launch, can impact a company's run rate. In these cases, it's best to exclude the event from your calculation.\"}),/*#__PURE__*/e(\"h3\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})}),/*#__PURE__*/e(\"h3\",{children:\"Do I need to adjust for inflation when calculating run rate?\"}),/*#__PURE__*/e(\"p\",{children:\"No, run rate is typically calculated using current revenue numbers.\"})]});export const richText8=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The average account revenue churn rate is a metric used to calculate the average monthly revenue lost due to churn. Churn measures the percentage of customers or subscribers who cancel their service within a given time period. For subscription businesses, it's important to keep tabs on churn rate because it directly impacts revenue.\"}),/*#__PURE__*/e(\"p\",{children:\"There are two types of churn: Customer churn and Revenue churn. Customer churn is the number or percentage of customers who cancel their subscription within a given period of time. Revenue churn is the amount of revenue lost from customers who cancel their subscription within a given period of time.\"}),/*#__PURE__*/e(\"h3\",{children:\"Average account revenue churn (ARC) specifically measures the amount of average MRR lost when customer\u2019s cancel your product or service. This metric is important for subscription businesses because it identifies if your churning high or low value customers during the period.\"})]});export const richText9=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Average account revenue churn (ARC) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"Average account revenue churn is calculated by dividing the total revenue lost from churned customers by the total number of customers at the beginning of the period.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Average account revenue churn (ARC) is:ARC = ( MRR charged last month but not this month / MRR at beginning of time period) x100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s say your MRR at the beginning of the period was $300k and since then 3 monthly subscription customers have churned (because they cancelled in the last month). You decide to re-calculate your MRR today, based on this churn and it\u2019s now $270k.\"}),/*#__PURE__*/e(\"p\",{children:\"$300k - $270k = $30k MRR churn\"}),/*#__PURE__*/e(\"p\",{children:\"$30k / 3 lost customers = $10k per customer.\"}),/*#__PURE__*/e(\"p\",{children:\"Your ARC = $10k on average.\"}),/*#__PURE__*/e(\"p\",{children:\"This means, you would expect in the future to lose $10k from your MRR every time a customer leaves.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Average account revenue churn (ARC) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"This metric is important because it allows businesses to track and identify trends in customer behaviour. Additionally, it can be used to predict future revenue loss and to make decisions about marketing, customer service, and product development.\"}),/*#__PURE__*/e(\"p\",{children:\"What are the two types of churn?\"}),/*#__PURE__*/e(\"p\",{children:\"There are two types of churn: Customer churn and Revenue churn. Customer churn is the number or percentage of customers who cancel their subscription within a given period of time. Revenue churn is the amount of revenue lost from customers who cancel their subscription within a given period of time.\"}),/*#__PURE__*/e(\"p\",{children:\"What's included in the calculation?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR charged this month is calculated by adding together any New MRR, Expansion MRR, and Reactivations MRR. The MRR from the \u2018beginning of the period\u2019 is equal to \u2018Last month\u2019s MRR\u2019 calculation.\"})]});export const richText10=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Average lifetime value, or LTV, is a metric that tells you how much money an average customer will bring your business over their lifetime.\"}),/*#__PURE__*/e(\"ul\",{children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The result is an estimation of how much revenue you can expect from each customer, which can help you determine how much money to spend acquiring new customers, and how much to spend on retaining existing customers.\"})})})]});export const richText11=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Average lifetime value (LTV) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"It's calculated by taking the average lifetime of all customers and multiplying it by the overall average spend per account or user.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Average lifetime value (LTV) is:\"}),/*#__PURE__*/e(\"p\",{children:\"LTV = Avg. Lifetime * ARPA\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"So if on average, your customers have spent $1000 a month and the average no. of months that a customer has stayed subscribed in the past is 16 months, your calculation would be as follows:\"}),/*#__PURE__*/e(\"p\",{children:\"16 x $1000 = $16,000.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Average lifetime value (LTV) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"It's easy to focus on acquisition and think that the only goal is to get as many new customers as possible. But if a business only acquires new customers and doesn't focus on retention, then it will have a very low LTV.\"}),/*#__PURE__*/e(\"p\",{children:\"On the other hand, a business with a high LTV is more likely to be profitable in the long run because it means that the company is not only acquiring new customers, but also retaining them.\"}),/*#__PURE__*/e(\"p\",{children:\"For example, a company with a high LTV can afford to spend more to acquire new customers than a company with a low LTV. This is because the high LTV company will earn back its investment plus more, while the low LTV company will not.\"}),/*#__PURE__*/e(\"h3\",{children:\"What's the difference between churn rate and LTV?\"}),/*#__PURE__*/e(\"p\",{children:\"Churn rate measures how many customers are leaving compared to how many are staying. You calculate churn rate by taking the number of customers who've been inactive for a period of time (usually 30 days) and dividing it by the total number of active customers at that time period. LTV measures how much revenue has been generated from each customer over their entire lifetime with your company\u2014it doesn't matter if they've been inactive for a while or if they're still active today!\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good LTV?\"}),/*#__PURE__*/e(\"p\",{children:\"Again, there is no definitive answer, as it varies from industry to industry. However, a general rule of thumb is that a good LTV should be at least 3x the Customer Acquisition Cost (CAC).\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I improve my company's LTV?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few different ways to do this, but some of the most common include:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Improving customer retention rates\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Increasing the average order value\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Increasing the frequency of purchases\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Cross-selling and upselling\"})})]})]});export const richText12=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Average revenue per user (ARPA) or Average revenue per account (ARPU) is the average amount of money a company makes per user on a monthly or yearly basis. It is calculated by taking the total revenue of a company and dividing it by the number of users that pay for services.\"}),/*#__PURE__*/e(\"p\",{children:\"As a business owner, you\u2019re always looking for ways to increase your revenue. ARPA is a measure of the average revenue generated per user of your product or service. It\u2019s a helpful way to track growth and determine whether your business is scaling effectively.\"})]});export const richText13=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Average revenue per user (ARPU / ARPA) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate ARPU, simply divide your total revenue by the number of users you have.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Average revenue per user (ARPU / ARPA) is:\"}),/*#__PURE__*/e(\"p\",{children:\"Total Revenue / Number of Active Accounts = ARPA\"}),/*#__PURE__*/e(\"p\",{children:\"For example, if your SaaS company makes $1 million in revenue in one year and you have 1,000 businesses using your software, your ARPU is $1,000.\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things to keep in mind when calculating ARPA. First, make sure you\u2019re using consistent units. If you\u2019re tracking monthly ARPA, make sure your revenue and user counts are also for the month.\"}),/*#__PURE__*/e(\"p\",{children:\"Second, you can choose to measure ARPA in different timeframes. For example, you could track daily, weekly, or monthly ARPA. The timeframe you choose will depend on your business and what makes sense for you.\"}),/*#__PURE__*/e(\"p\",{children:\"Third, be sure to include all revenue in your calculation. This means revenue from all sources, such as advertising, subscriptions, and product sales.\"}),/*#__PURE__*/e(\"p\",{children:\"Fourth, you can segment your users in different ways to get more insight into your ARPA. For example, you could segment by paying and non-paying users, or by different product tiers.\"}),/*#__PURE__*/e(\"p\",{children:\"Finally, keep in mind that ARPA is just one metric to track. It\u2019s important to look at ARPA in conjunction with other measures, such as churn rate and lifetime value, to get a complete picture of your business.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Average revenue per user (ARPU / ARPA) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"ARPA is important to understand because it gives an indication of how much each user is worth to a company, which can be used to determine if a product or service has potential for growth and expansion.\"}),/*#__PURE__*/e(\"h3\",{children:\"Is ARPA monthly?\"}),/*#__PURE__*/e(\"p\",{children:\"ARPA can be measured across any period of time depending on your business model. It is most commonly used on a monthly basis but it can also be used on a daily,weekly,quarterly or annually basis.wer\"}),/*#__PURE__*/e(\"h3\",{children:\"What is ARPA and ARPU?\"}),/*#__PURE__*/e(\"p\",{children:\"ARPA is the average revenue generated per account, ARPU is the average revenue generated per user.\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"ARPA = Sum of revenue/ The total number of accounts\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"ARPU = Sum of revenue/ The total number of users.\"})})]}),/*#__PURE__*/e(\"h3\",{children:\"What are some ways to increase ARPA / ARPU?\"}),/*#__PURE__*/e(\"p\",{children:\"Some ways to increase ARPA include increasing prices, adding features to justify a higher price, acquiring high-value customers, and reducing churn.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good ARPA / ARPU?\"}),/*#__PURE__*/e(\"p\",{children:\"There is no one-size-fits-all answer to this question. ARPA will vary depending on your business, your industry, and your pricing model.\"}),/*#__PURE__*/e(\"h3\",{children:\"How often should you calculate ARPA / ARPU?\"}),/*#__PURE__*/e(\"p\",{children:\"You can calculate ARPA as often as you like, but most businesses choose to track it on a monthly basis.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText14=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Measures the average selling price of your businesses products or services. It\u2019s a great indicator of whether discounting is driving down revenue. The ASP is used to measure the market value of a good or service. It is a useful metric for businesses to track as it can provide insight into pricing trends and customer demand.\"})]});export const richText15=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Average selling price (ASP) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The ASP can be calculated for a single good or service, or for all goods or services. Upzelo calculates the ASP all goods or services, using the total revenue from sales of all goods or services, divided by the total number of units sold\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Average selling price (ASP) is:ASP = ( MRR / No. of customers in period ) x100\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Average selling price (ASP) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"The ASP is an important metric for businesses to track as it can provide insight into pricing trends and customer demand. It can also be used to benchmark the performance of a business against its competitors.\"}),/*#__PURE__*/e(\"h3\",{children:\"What factors can affect the ASP?\"}),/*#__PURE__*/e(\"p\",{children:\"The Average selling price in your account may fluctuate over time, as it is impacted by relevant factors such as:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Changing market conditions.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Pricing updates / changes.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Seasonal factors, such as holidays.\"})})]})]});export const richText16=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A billing invoice is a document that records the amount that you invoice your customers for the purchase of goods or services. It is used to record how much money was spent on the goods or services, and what they were purchased for. The billing invoice is usually sent out by the seller to the buyer after the goods or services have been received.\"})]});export const richText17=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Is billings a revenue account?\"}),/*#__PURE__*/e(\"p\",{children:\"No, billings is an account that shows how much money you'll receive from your client/customer if your project is completed successfully.\"}),/*#__PURE__*/e(\"h3\",{children:\"Is billings the same as revenue?\"}),/*#__PURE__*/e(\"p\",{children:\"No, Billing is when you record how much money you've earned from your clients/customers for completed work. 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They are basically contracts that allow the client to pay for services on an ongoing basis. These bookings can be paid for in one lump sum, or they can be paid for overtime with small increments each month or year.\"})]});export const richText19=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Let's say that in that July you have 3 contracts:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Contract 1: A month to month cancelable contract with a value of $400 a month.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Contract 2: An annual contract where the customer pays $1,200 all upfront.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Contract 3: A 3 year committed contract worth $30,000 but paid annually.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Your bookings are the sum of the committed revenue, so in this example, your July bookings are $31,600. $400 from contract 1, $1,200 for contract 2 and $30,000 for contract 3.\"}),/*#__PURE__*/e(\"h3\",{children:\"Related terms\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"deferred-revenue\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"KmoqjWU28\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Deferred revenue\"})})}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"recurring-revenue\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"t2yvcNBW9\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Recurring revenue\"})})}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"billings\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"yq81_Mser\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Billings\"})})})]});export const richText20=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A person, typically a satisfied customer, who passionately promotes and recommends your brand to others. These individuals are invaluable for their genuine endorsements and their ability to influence potential customers through word-of-mouth.\"})]});export const richText21=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"This involves creating a strong emotional connection between your brand and its customers, influencing their purchasing decisions and loyalty. High brand engagement is indicative of a successful relationship-building strategy with your audience.\"})]});export const richText22=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A real-time stream displaying all customer actions within your loyalty program.\"})]});export const richText23=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total number of customers in your loyalty program, including both members and guests.\"})]});export const richText24=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Churn is a term used to describe the rate at which customers are leaving a product or service. In other words, it's the number of customers who stop using your product or service over a period of time. It's one of the most important metrics for SaaS companies, because it shows how quickly you're losing customers and whether or not you're retaining them. In the context of subscription businesses, it's also referred to as \\\"cancellations\\\" or \\\"attrition\\\". It's a metric that's closely watched by CEOs and investors alike, because it directly impacts a company's revenue\"})]});export const richText25=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"p\",{children:\"There are two types of churn a subscription business should be measuring the rates of, and acting upon:\"}),/*#__PURE__*/e(\"h3\",{children:\"Customer churn Rate\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Customer churn rate = ( Customers who cancel / Total number of customers at beginning of time period) * 100\"})}),/*#__PURE__*/t(\"p\",{children:[\"Learn more about \",/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"customer-churn-rate\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"OxILv5Iuz\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"customer churn rate\"})}),\".\"]}),/*#__PURE__*/e(\"h3\",{children:\"Revenue churn rate\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Revenue churn rate = (Sum of MRR for Lost customers.) * 100\"})}),/*#__PURE__*/t(\"p\",{children:[\"Learn more about \",/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"revenue-churn-rate\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"IrPtunl8E\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"revenue churn rate\"})}),\".\"]})]});export const richText26=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer cohorts are a group of customers who share common characteristics, such as age, location, or purchase history. They are often used to determine the most effective methods for reaching out to similar customers by grouping current customers into cohorts for analysis.\"}),/*#__PURE__*/e(\"p\",{children:\"In the SaaS industry a common cohort is based on the length of time that certain customers have been with you.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"2021 Cohort: Customers who signed up in 2021\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Year 4 Cohort: Customers who are in their fourth contracted year with you\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Q1 2022 Cohort: Customers who signed up in the first quarter of 2022\"})})]}),/*#__PURE__*/e(\"p\",{children:\"These cohorts can be used to compare purchase trends but also to compare SaaS specific metrics such as churn rate.\"})]});export const richText27=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Why should I care about customer cohorts?\"}),/*#__PURE__*/e(\"p\",{children:\"The more you know about your customers, the more effective your marketing strategies will be. Segmenting customers into cohorts allows you to tailor messages and offers in order to appeal to each group's particular needs. It also helps you identify opportunities for cross-selling and upselling existing customers, which can help you increase revenue and profit margins.\"}),/*#__PURE__*/e(\"p\",{children:\"What are some examples of customer cohorts?\"}),/*#__PURE__*/e(\"p\",{children:\"Here are just a few examples:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Gender: Men vs Women\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Age/Generation: Baby Boomers vs Gen Zers vs Millennials vs Gen Xers\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Location: City dwellers vs suburbanites vs rural residents\"})})]})]});export const richText28=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Downgrades and Contraction of MRR are reductions in Monthly recurring revenue during the month due to existing subscribers that now pay less than they did before, often due to a change of plan or removal of 1 subscription where they have multiple.\"}),/*#__PURE__*/e(\"p\",{children:\"A high % of downgrades across an entire customer base can be an indicator that your existing customers are not receiving value from your product. And if it\u2019s rising then you will need to take action by speaking to customers and / or providing them with another option at the point of cancellation.\"})]});export const richText29=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Contraction MRR / Downgrade MRR calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Contraction MRR / Downgrade MRR is:Downgrade MRR (This Month) = Sum (MRR lost this month compared to last month from active subscribers of this month)\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"At the start of May you have an MRR of $5,000 and from the same customers you end may with an MRR of $4,000. This has seen an contraction in your MRR of 20%.\"}),/*#__PURE__*/e(\"p\",{children:\"Your Downgrade / Contraction MRR is $1000.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Contraction MRR / Downgrade MRR important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Downgrades are a common component in many metrics that investors pay a lot of attention to. If you\u2019re looking for funding, having a low downgrade % will have a strong impact on your Net Revenue Retention rate, which is a key metric you\u2019ll want to impress investors with.\"}),/*#__PURE__*/e(\"h3\",{children:\"What counts as a downgrade?\"}),/*#__PURE__*/e(\"p\",{children:\"These items all count in the downgrade measure:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer moving from a higher price plan to a lower cost plan.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"A forever discount applied to an existing plan that lowers the price.\"})})]})]});export const richText30=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Cost of Goods Sold (COGS) is the direct cost incurred by a company in order to provide a good or a service.\"}),/*#__PURE__*/e(\"p\",{children:\"For SaaS companies, these are costs that are specific to each individual customer upon purchase of the software. They include but are not limited to:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Software implementation costs\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Support personnel costs\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Site operations costs (hosting, fees, personnel wages)\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Training and onboarding costs.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Other typical business costs such as software development or marketing acquisition are not included in COGS as they are unique to each individual and wont change with the purchase of software by a new customer.\"})]});export const richText31=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Your customer\u2019s COGS include:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Internal engineering support: $2,100\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Hosting Fees: $5,150\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Third party and/or transaction fees: $3,100\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer support: $10,000.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Your COGS is the sum of these expenses which is $20,350. If your revenue for this service is $100,000 then your COGS percentage is 20.35% and you have a gross margin of 79.65%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why do I need to calculate my COGS?\"}),/*#__PURE__*/e(\"p\",{children:\"The cost of goods sold calculation tells you how much money you've spent on producing your products or providing your services over a given period of time (usually one year). It's important for businesses to track this figure because it allows them to understand how much money they're spending on producing their goods or services, allowing them to price their product to ensure a strong level of margin.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between COGS and expenses?\"}),/*#__PURE__*/e(\"p\",{children:\"There are many differences between COGS and expenses, but the main difference is that COGS are directly related to the production of your product/service , while expenses are any items that are not directly tied to a product's sale or production.For example, if your company pays $50,000 in rent per year, then that money is an expense, because it doesn't go towards making a specific product or service.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the typical level of COGS in SaaS\"}),/*#__PURE__*/e(\"p\",{children:\"COGS range between 5% and 35% in SaaS industries. Higher COGS usually occur due to complex software implementation, costs or the dependence on large support teams.\"})]});export const richText32=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer acquisition cost (CAC) is the amount it costs your business to acquire a new customer. It can be calculated by dividing your total marketing expenses by the number of customers you acquired in a given period.\"})]});export const richText33=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer acquisition cost (CAC) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer acquisition cost (CAC) is:Customer Acquisition Cost (CAC) = Total marketing and sales spend / The number of new customers.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"The below is based on one month.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Personal Spend\"})}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Number of Staff - 3\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Staff Salary - $8,000\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Employee Expense - $24,000\"})})})]}),/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Marketing Spend\"}),\"\\xa0\"]}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"PPC- $20,000\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Brand Advertising - $4,000\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"LinkedIn Ads - $2,000\"})}),/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Total Marketing Expense - $26,000\"})}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"Total Cost - $50,000\"})}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/e(\"p\",{children:\"Number of New Customers - 600\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"CAC = $83.33\"})})})]}),/*#__PURE__*/e(\"h3\",{children:\"Why is Customer acquisition cost (CAC) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"The importance of understanding your customer acquisition cost lies in knowing how much you need to spend on marketing in order to bring in new customers who will generate revenue for your company. If your CAC is too high, you may find yourself running out of funds before you have time to recoup those costs through sales revenue from new customers.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"How is CAC ratio calculated?\"})}),/*#__PURE__*/e(\"p\",{children:\"The CAC ratio is calculated by dividing the total cost of acquiring customers by the number of new customers acquired during a certain period.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What is the CAC ratio in SaaS?\"})}),/*#__PURE__*/e(\"p\",{children:\"This ratio measures how much it costs to acquire each new customer versus how much revenue those new customers generate for your company. The lower this number is, the better!\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"strong\",{children:\"What is a good CAC rate?\"})}),/*#__PURE__*/e(\"p\",{children:\"CAC ratios vary widely between different types of businesses. For example, if you're in a highly competitive market where there are many other companies vying for customers, your CAC will be higher than if you offer a unique service or product.\"})]});export const richText34=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer attrition rate is the percentage of customers who do not renew their subscription to a product or service. Customer attrition rate is more commonly referred to as a businesses churn rate.\"}),/*#__PURE__*/e(\"p\",{children:\"It's important to know this number because it can tell you whether or not you're actually retaining your customers and how many of them are churning.\"})]});export const richText35=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer attrition rate calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"A company's customer attrition rate is calculated by dividing the number of customers lost during a period of time by the total number of customers at the beginning of that period.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer attrition rate is:Customer attrition rate = Customers who cancel (During the time period) \\xf7 Total number of customers (At the start of the time period)\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Let's say you have a monthly subscription-based product and you have 100 customers. At the end of the first month, 20 of those customers decide they no longer want the product and cancel their subscriptions.\"}),/*#__PURE__*/e(\"p\",{children:'This means that 20% of your customers are leaving each month, which is referred to as \"churn.\" The customer attrition rate or churn rate for this particular business would be 20%.'}),/*#__PURE__*/e(\"h3\",{children:\"Why is Customer attrition rate important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"The customer attrition rate is important because it is a measure of how well a company is retaining its customers. A high customer attrition rate can be a sign that a company is losing customers faster than it is gaining them, which is not sustainable in the long run.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good customer attrition rate?\"}),/*#__PURE__*/e(\"p\",{children:\"A good customer attrition rate depends on the industry. For example, in the SaaS industry, a customer attrition rate of less than 5% is considered good.\"}),/*#__PURE__*/e(\"h3\",{children:\"What are the causes of high customer attrition rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There are many causes of high customer attrition rate, but some common ones are poor customer service, high prices, and a lack of innovation.\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I reduce my customer attrition rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There are several ways to reduce customer attrition rate, such as improving customer service, offering discounts or loyalty programs, and constantly innovating.\"})]});export const richText36=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Keep track of the size of your active, paying customer base over time by counting the number of active customers. This represents the number of unique subscribers to your product(s), regardless of how many individual subscriptions each customer has.\"})]});export const richText37=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer base calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer base is:No. of customers = Count of all customers with 1 or more subscriptions during the period.\"}),/*#__PURE__*/e(\"h3\",{children:\"Related terms\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"customer-churn-rate\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"OxILv5Iuz\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Customer churn rate\"})})})}),/*#__PURE__*/e(\"li\",{children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"customer-lifetime-value-cltv-clv\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"W1pcZqTwF\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Customer lifetime value (CLTV)\"})})})}),/*#__PURE__*/e(\"li\",{children:/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(r,{href:{pathVariables:{xeg6TWTL_:\"customer-retention-rate\"},unresolvedPathSlugs:{xeg6TWTL_:{collectionId:\"C3DyW9lrH\",collectionItemId:\"JSt3_Je2o\"}},webPageId:\"kXf6v6H6K\"},openInNewTab:!1,smoothScroll:!1,children:/*#__PURE__*/e(\"a\",{children:\"Customer retention rate\"})})})})]})]});export const richText38=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate churn rate, you need to know two things: the number of customers you had at the beginning of the period, and the number of customers you had at the end of the period.\"})]});export const richText39=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer churn rate calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer churn rate is:\"}),/*#__PURE__*/e(\"p\",{children:\"Customer churn rate = ( Customers who cancel / Total number of customers at beginning of time period) * 100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If you have 100 customers and 12 of them stop using your product or service in one month, your churn rate for that month would be 12%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Customer churn rate important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer churn rate is important because it can be a leading indicator of financial trouble. If a company's churn rate is increasing, it could be a sign that the company is losing touch with its customer base, and that could lead to lower revenues.\"}),/*#__PURE__*/e(\"p\",{children:\"The higher the churn rate, the less profitable your business will be. If you have a high churn rate, then this means that a large number of customers are cancelling with you. This leads to a lower level of recurring revenue coming into your business than if you were to have a lower churn rate. This also impacts total revenue as to make up for the loss in customers you will have to acquire new customers which can cost 5 times more than keeping an existing customer.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is customer churn rate?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer Churn rate is an important metric because it helps companies understand how many customers they are losing each month. It is often used to determine whether a particular product or service is profitable. If too many customers are leaving, then it's likely that the product or service isn't providing enough value for people to continue paying for it.\"}),/*#__PURE__*/e(\"h3\",{children:\"Is a low churn rate good?\"}),/*#__PURE__*/e(\"p\",{children:\"The answer is yes. A low churn rate is a good thing because it indicates that your customers are happy with the product and service you provide them. They won't be looking to cancel their subscription with you and therefore you will increase your recurring revenue.\"}),/*#__PURE__*/e(\"h3\",{children:\"What does a 20% churn rate mean?\"}),/*#__PURE__*/e(\"p\",{children:\"A churn rate of 20% means that for every 100 customers you had at the start of the month, 20 of them will leave.For example, if you have 200 customers at the beginning of the month and only 160 at the end of the month, your churn rate is 20%.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good churn rate?\"}),/*#__PURE__*/e(\"p\",{children:\"A good churn rate is one that is low, or if you\u2019re actively working on it, decreasing.While a good churn rate varies from industry to industry ( 20% - 5%) it's universally beneficial to have a lower churn rate as it allows you to increase your recurring revenue. It is also a sign that your customers are happy with your product/service and the price you are charging for it.\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I reduce my churn rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a number of ways to reduce customer churn rate. Some common strategies include:Improving customer serviceOffering more value to customersIntroducing an involuntary churn tool to retry card paymentsSurvey customers that are leaving to find out how you can improve your product(s)Incentivise customer to stay with targeted offers at the point of cancellation\"})]});export const richText40=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Reflects the depth of the relationship between a customer and a brand, gauged by how actively and frequently the customer interacts with the brand across various touchpoints.\"})]});export const richText41=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The cumulative impact of all interactions a customer has with a business throughout their relationship, including both direct purchases and engagements with marketing or customer service.\"})]});export const richText42=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The ratio between CLTV and CAC is used in subscription based industries to determine how profitable a customer will be over their lifetime associated with a business.\"})]});export const richText43=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer lifetime value : Customer acquisition cost (CLTV : CAC Ratio) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer lifetime value : Customer acquisition cost (CLTV : CAC Ratio) is:CLTV : CAC Ratio = Customer Lifetime Value (CLTV) \\xf7 Customer Acquisition Cost (CAC)\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"A customer that you have acquired is expected to have a customer lifetime value (CLTV) of $500, the Customer Acquisition Cost for this customer was $100. This gives you a ratio of 5:1.\"}),/*#__PURE__*/e(\"h3\",{children:\"What's a good CLTV:CAC Ratio?\"}),/*#__PURE__*/e(\"p\",{children:\"In general, the higher a company's CLTV:CAC ratio, the better. This means that the company's customers are more valuable than its cost to acquire them. If the ratio is negative then it suggests that your business is running at a loss to acquire new customers. It's important to note that this ratio is not always indicative of a successful business. A good CLTV:CAC Ratio is considered to be 3 or above.\"})]});export const richText44=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer Lifetime Value (CLTV or CLV) is the total sum of all revenue a customer is expected to generate for a company over the course of their lifetime. CLTV is usually calculated by multiplying a customer's average value by how many years/months they expect that customer to remain a customer.\"})]});export const richText45=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Customer lifetime value (CLTV / CLV) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer lifetime value (CLTV / CLV) is:CLTV = Average customer value X Average customer lifespan\"}),/*#__PURE__*/e(\"p\",{children:\"As an example, for a monthly subscription service, if a customer starts paying $20 a month for a subscription and the average customer lifetime is 25 months then you get a customer lifetime value of $500 ($20 dollar value X 25 months).\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Customer lifetime value (CLTV / CLV) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"It allows companies to make more informed decisions about how much they can spend on marketing and how much they can invest in customer acquisition campaigns. It also helps them allocate resources more effectively between acquisition, retention, and expansion of their customer base.\"}),/*#__PURE__*/e(\"p\",{children:\"CLTV is also used when determining the value of the acquisition: if a customer spends $500 on your product per year, but only stays with you for 1 year before leaving, their CLTV would be $500. If they stay with you for 10 years before leaving, their CLTV would be $5,000.\"}),/*#__PURE__*/e(\"h3\",{children:\"Are CLV and CLTV the same thing?\"}),/*#__PURE__*/e(\"p\",{children:\"Both CLV and CLTV refer to Customer Lifetime Value. CLV/CLTV represent the average revenue you can expect to generate from customers over the entire lifetime of their account.\"}),/*#__PURE__*/e(\"h3\",{children:\"Is CLTV a KPI?\"}),/*#__PURE__*/e(\"p\",{children:\"In SaaS industries and other subscription based services CLTV is a very important KPI. Customer lifetime value allows you to understand how much revenue you expect to receive from a customer over the lifetime of their subscription, this allows you to forecast future revenue, allocate marketing budget to improve the CLTV and forecast business growth in terms of both revenue and profit.\"}),/*#__PURE__*/e(\"h3\",{children:\"What's the difference between LTV and CLTV?\"}),/*#__PURE__*/e(\"p\",{children:\"LTV is the aggregation of all the revenue that you can expect to earn from your customers. CLTV is the measure of how much a single customer will bring into your business over their forecasted lifetime interacting with your business.\"})]});export const richText46=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The Customer retention rate, Customer renewal rate or sometimes referred to as just retention rate is the percentage of customers who renew their subscription for another period. 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This number is then multiplied by 100 to get a percentage.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Customer retention rate / Customer renewal rate is:\"}),/*#__PURE__*/e(\"p\",{children:\"Customer retention rate % = (No. of active customers in this period / No. of active customers at the end of last period) *100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"A company that has 100,000 subscribers and renews 90,000 of them losing 10,000 to churn would have a renewal rate of 90% and a churn rate of 10%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Customer retention rate / Customer renewal rate important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few key reasons why customer retention is so important for businesses.\"}),/*#__PURE__*/e(\"p\",{children:\"First, it's cheaper to keep existing customers than to acquire new ones. It costs five times as much to acquire a new customer than it does to keep an existing one.\"}),/*#__PURE__*/e(\"p\",{children:\"Second, existing customers are more likely to buy from you again. They're also more likely to recommend your products or services to others.\"}),/*#__PURE__*/e(\"p\",{children:\"Third, existing customers have a better understanding of your products or services. They're more likely to be satisfied with your products or services and less likely to churn.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is customer retention?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer retention is the process of keeping existing customers happy and engaged with your products or services.\"}),/*#__PURE__*/e(\"p\",{children:\"What is customer churn?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer churn is the process of customers leaving or discontinuing their use of your products or services.\"}),/*#__PURE__*/e(\"h3\",{children:\"What are the causes of customer churn?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a number of factors that can cause customer churn, such as the quality of the products or services, the level of customer service, the pricing, and the overall customer experience.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good customer retention rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There is no one-size-fits-all answer to this question. The answer depends on a number of factors, such as the industry, the company's goals, and the competition. In general, a customer retention rate of 80% or higher is considered good. A customer retention rate of 90% or higher is considered excellent.\"}),/*#__PURE__*/e(\"h3\",{children:\"What are some ways to improve customer retention rates?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a number of ways to improve customer retention rates. These include:Improving customer serviceOffering more value to customersIntroducing an involuntary churn tool to retry card paymentsSurvey customers that are leaving to find out how you can improve your product(s)Incentivise customer to stay with targeted offers at the point of cancellation\"})]});export const richText48=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer revenue is the total amount of money that a customer's subscription generates for a business.\"}),/*#__PURE__*/e(\"p\",{children:\"Customer revenue is broken up into two main categories: monthly recurring revenue (MRR) and annual recurring revenue (ARR). MRR refers to all the revenue that a business makes from its current customers each month, while ARR refers to all the revenue that they will make over the next 12 months from current customers.\"})]});export const richText49=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If a customer signs up for a $10 monthly subscription and pays via credit card, the customer revenue is $120 per year.\"}),/*#__PURE__*/e(\"h3\",{children:\"How do you increase customer revenue?\"}),/*#__PURE__*/t(\"ol\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Increase the cost of the product/service. If you charge more for your offering then you will increase the amount of revenue each customer generates.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Acquire new customers. If you acquire new customers then you will increase the total amount of revenue that you generate.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Decrease cancellations. If you run a subscription business model and you can decrease your churn rate then you will increase the number of customers that you have paying for your services thus increasing your customer revenue.\"})})]})]});export const richText50=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer success software is used to help businesses manage their relationships with customers, by providing them with the tools they need to provide support, Insights, and guidance so that the customers can achieve their goals. It helps businesses keep track of customer interactions with the product/ service and performance metrics.\"}),/*#__PURE__*/e(\"p\",{children:\"Customer Success Software can help companies identify their most important customers and determine how much time each of these customers spends with the company's products or services. Then, the software can monitor these metrics over time so that businesses can better understand how their customers feel about their products and services. This helps businesses better tailor their offerings to meet customer needs, which leads to more satisfied customers who are likely to spend more money with the company over time.\"})]});export const richText51=/*#__PURE__*/e(n.Fragment,{children:/*#__PURE__*/e(\"p\",{children:\".\"})});export const richText52=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Deferred revenue is a common term in the world of accounting and finance. It refers to money that a company has received for goods or services that have not yet been delivered. 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This revenue can be derived from upselling, cross selling, add-ons such as additional feature purchases or an increase in feature limit.\"})]});export const richText55=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Expansion MRR / Upgrade MRR calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Expansion MRR / Upgrade MRR is:\"}),/*#__PURE__*/e(\"p\",{children:\"Expansion / Upgrade MRR = ( Sum of revenue generated by customers that increase their MRR vs last month, during the period by your business) x100\"}),/*#__PURE__*/e(\"p\",{children:\"OR, you might view this metric as a % rate:\"}),/*#__PURE__*/e(\"p\",{children:\"Expansion MRR % = (MRR at End of Month \u2013 MRR at Start of Month) \\xf7 MRR at Start of Month\"}),/*#__PURE__*/e(\"p\",{children:\"One key addition to the formula is that this has to be a comparison of the same customers at the end of the month vs the start of the month, you can't include new customers.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"At the start of May you have an MRR of $5,000 and from the same customers you end may with an MRR of $6,000. This has seen an expansion in your MRR of 20%.\"}),/*#__PURE__*/e(\"p\",{children:\"$1000 (difference in MRR between end of month and start of month) / $5000 (starting MRR).\"}),/*#__PURE__*/e(\"h3\",{children:\"What counts as an upgrade?\"}),/*#__PURE__*/e(\"p\",{children:\"These items all count in the upgrade measure:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer moving from a lower price plan to a higher cost plan.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Customer adding an additional plan to their existing plan.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Discounts being removed from a plan do not count as an upgrade.\"})]});export const richText56=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Gross Margin is a measure of the amount earned by a company from selling its products. Gross Margin is calculated by subtracting the cost of goods sold from sales revenue, and then dividing that difference by sales revenue. The result is expressed as a percentage.\"})]});export const richText57=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Gross Margin calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Gross Margin is:Gross margin = (Revenue - COGS) \\xf7 Revenue\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Your business makes $25,000 in revenue and the cost of goods sold to produce the product was $15,000. This gives you a return of $10,000. Your gross margin is $10,000 \\xf7 $25,000 which as a percentage is 40%.\"}),/*#__PURE__*/e(\"h3\",{children:\"What does gross margin measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Gross Margin measures the profitability of a company's operations. If a company's gross margin is high, it means that the company has been able to sell its products for more than what it costs to produce them. If a company's gross margin is low, it means that there is not enough profit to cover all of its expenses, which could lead to financial trouble down the road if left unchecked.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the importance of gross margin?\"}),/*#__PURE__*/e(\"p\",{children:\"The importance of Gross Margin lies in its ability to help you understand how much profit your business makes on each sale, as well as how profitable certain products are compared to others within your industry or market space (if applicable). This information can be used to determine where additional investment should be allocated\u2014for example, if one product line isn't performing well compared with others within your brand portfolio then perhaps some changes need to be made before investing more time and money into those products.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText58=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The Gross revenue retention (GRR) is used to understand how well your business retains its customers. Simply put, it\u2019s the percentage of revenue that a company keeps each month.\"}),/*#__PURE__*/e(\"p\",{children:\"Gross revenue retention is a valuable metric for companies to track because it provides insight into how much revenue is being retained each month. Additionally, gross revenue retention can be used to predict future revenue growth. For example, if a company has a Gross revenue retention of 90%, it\u2019s doing a good job of retaining its existing customers, and can spend less time dealing with a revenue retention problem.\"})]});export const richText59=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Gross revenue retention / Gross retention rate (GRR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"It's calculated by taking a company's total revenue and subtracting the revenue from new customers\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Gross revenue retention / Gross retention rate (GRR) is:\"}),/*#__PURE__*/e(\"p\",{children:\"GRR = (Existing MRR - Revenue Churn) / Existing MRR *100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If a company has $1 million in existing monthly recurring revenue and $400,000 in monthly recurring revenue churn, its gross revenue retention would be:\"}),/*#__PURE__*/e(\"p\",{children:\"Existing MRR: $1 million\"}),/*#__PURE__*/e(\"p\",{children:\"MRR Churn: $400,000\"}),/*#__PURE__*/e(\"p\",{children:\"GRR = 60%\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Gross revenue retention / Gross retention rate (GRR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"This metric is important because it shows how well a company is retaining its existing customers and growing its business with them. If a company has high gross revenue retention, it's a good sign that its customers are happy and that it's doing a good job of upselling and cross-selling to them.\"}),/*#__PURE__*/e(\"p\",{children:\"If you're looking at a company's financials, be sure to calculate this metric to get a better understanding of the business.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a typical GRR for a subscription business?\"}),/*#__PURE__*/e(\"h3\",{children:\"Typically, a successful subscription businesses GRR will sit between 80 and 100%, with variations for businesses with similar value products and business age.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between GRR and NRR?\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s look at the 2 calculations side-by-side:GRR = (Existing MRR - Churn MRR) / Existing MRR *100NRR = (Existing MRR + Upgrades MRR - Downgrades MRR - Churn MRR) / Existing MRR *100Gross revenue retention focuses on how well a business retains existing customer revenue, but ignoring any upgrades and downgrades within the period. Whilst Net revenue retention includes both upgrades and downgrades within the rate calculation, to factor in how the business is retaining and expanding existing customer revenues.\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I increase the GRR of my subscription business?\"}),/*#__PURE__*/e(\"p\",{children:\"First, take a look at your pricing. If you're not charging enough for your product or service, you're not going to be able to keep much of the revenue you bring in. Make sure you're priced competitively and that you're making a profit on each sale.Second, focus on providing great customer service. If your customers are happy, they're more likely to continue doing business with you. Make sure you're responsive to their needs and that you're always working to improve the customer experience.Finally, work on building a loyal customer base. The more customers you have who keep coming back, the more revenue you'll be able to retain. Focus on creating a brand that people can trust and that they'll want to keep doing business with.If you can increase your gross revenue retention, you'll be in a much better position to grow your business. Keep these tips in mind and you'll be on your way to success.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText60=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A structured plan designed to motivate and reward specific behaviors, such as making purchases or achieving sales targets. Effective incentive programs are tailored to the unique motivations of their audience, driving desired actions and fostering loyalty.\"})]});export const richText61=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A customer loyalty tier is a level within a structured loyalty program that categorizes customers based on their engagement, purchase frequency, spending behavior, or other relevant criteria. These tiers are designed to reward and incentivize customers in a way that encourages more frequent purchases, higher spending, or deeper engagement with the brand. Typically, the higher the tier, the greater the rewards and privileges a customer receives.\"})]});export const richText62=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How do customers move through loyalty tiers?\"}),/*#__PURE__*/e(\"p\",{children:\"Loyalty tiers often start with a basic or entry-level tier for new or infrequent customers and progress to higher tiers for those who engage more deeply or spend more with the brand. Advancement to a higher tier is usually based on reaching specific milestones, such as accumulating a certain number of points, meeting spending thresholds, or completing engagement activities over a set period.\"}),/*#__PURE__*/e(\"h3\",{children:\"Benefits of loyalty tiers\"}),/*#__PURE__*/e(\"p\",{children:\"The benefits provided at each tier can vary widely but often include exclusive discounts, early access to products or sales, free shipping, special customer service lines, and more personalized services or experiences. The tiered system not only motivates customers to strive for higher levels of loyalty and rewards but also allows businesses to segment their customer base and tailor their marketing and service efforts more effectively.\"}),/*#__PURE__*/e(\"p\",{children:\"By recognizing and rewarding their most valuable customers with enhanced benefits, companies can foster stronger relationships, improve customer satisfaction and retention, and ultimately drive increased revenue.\"})]});export const richText63=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The LAER customer success model is a customer engagement model designed by the Technology Services Industry Association (TSIA). The model was designed to help SaaS businesses grow.\"}),/*#__PURE__*/e(\"p\",{children:\"The LAER model has four components to it. Land, Adopt, Expand, and Renew. Each stage represents a different part of the customer journey and for businesses represents four key areas which can be improved to drive greater customer success.\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Land - This stage refers to the acquisition or \u201Clanding\u201D of a customer into the business. This is done through the efforts of sales and marketing.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Adopt - This stage is the process of getting the customer to become a regular user of the product, moving them from a trial to a recurring subscription. This requires a lot of customer engagement making sure they can get the most amount of benefit from their use of your software. The more value they can see in your product the more likely they are to renew their contract.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Expand - Once the customer has become fully onboarded with your service and is a regular user, this is the chance to expand your offering to them. This usually takes the form of upselling to them other additional add-ons to the product that can help them increase the performance they are getting from your software.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Renew - The last stage to the LAER model is the Renew stage where a firm will decide whether to renew their subscription to your service. There are a few ways to increase your renewal rates and to decrease your churn. Constant engagement with the customer throughout their contract will help increase the likelihood of them renewing, solving any issues they encounter and releasing new features to help them achieve their goals. The use of retention software such as Upzelo also can help decrease your churn and improve your renewal rate.\"})})]})]});export const richText64=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Represents the obligation of a company to its customers in terms of unredeemed points or rewards. It's crucial to accurately track and manage this liability to ensure financial stability and transparency, reflecting the commitment to honor the value promised to customers through the loyalty program.\"})]});export const richText65=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"If you\u2019re running a subscription business you\u2019ll be keeping a close on this simple metric. Crucially, a lost customer is not a customer that has \u2018cancelled\u2019, for example they\u2019ve called / emailed in to cancel their contract, or have clicked a \u2018Cancel\u2019 button in your platform. Lost customers are a count of the number of customers in the period that have churned.\"}),/*#__PURE__*/e(\"p\",{children:\"A customer has \u2018churned\u2019 when the end of the contract period occurs. So if they cancel part way through a monthly billing contract, then they are not considered as a Lost customer until their next billing date.\"})]});export const richText66=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Lost customers calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The number of customers who have churned in a given period are counted.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Lost customers is:Lost customers = Count of Customers who were billed last month, but not this month.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Last month, 80 customers \u2018cancelled\u2019 their monthly contract with the business.\"}),/*#__PURE__*/e(\"p\",{children:\"1 year ago, 3 customers \u2018cancelled\u2019 their annual contract with the business.\"}),/*#__PURE__*/e(\"p\",{children:\"This month, they would all be counting toward the Lost customer count.\"}),/*#__PURE__*/e(\"p\",{children:\"Ie. 80 monthly customers from last month + 3 annual customer from last year = 83 customers lost this month.\"})]});export const richText67=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Tools and platforms that facilitate the creation, management, and optimization of customer loyalty programs. These solutions offer features such as reward tracking, customer segmentation, and analytics, enabling businesses to deliver personalized experiences and rewards to foster customer loyalty.\"})]});export const richText68=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"If you're in the business of selling anything on a subscription basis, then you're likely very interested in your Monthly recurring revenue, or MRR. This metric is a key indicator of the health of your business, as it represents the amount of revenue that you can count on every month.\"}),/*#__PURE__*/e(\"p\",{children:\"Monthly Recurring Revenue (MRR) is an important metric for many businesses and can be used to measure the financial health of a company. It is also one of the most misunderstood metrics, and often miscalculated in home-brew analytics solutions.\"}),/*#__PURE__*/e(\"p\",{children:\"You should be monitoring multiple parts of MRR for your business, including New MRR, Expansion MRR, Reactivation MRR, Contraction MRR and MRR Churn.\"})]});export const richText69=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Monthly recurring revenue (MRR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR is calculated by taking the total amount of recurring revenue for a given month, and normalising it to a monthly value. For example where a subscription is annual, you would divide it\u2019s annual value by 12 to find the monthly value to the business.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Monthly recurring revenue (MRR) is:MRR = Sum of all recurring charges, normalised to 1 month.\"}),/*#__PURE__*/e(\"p\",{children:\"Upzelo does not deduct transaction fees, refunds or deduct cancellations / subscription pauses immediately from the calculated MRR.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Monthly recurring revenue (MRR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR measures how much money your business brings in every month, which allows you to make decisions about hiring or expanding based on current trends in financial performance rather than just sales volume for each individual transaction. It also provides insight into long-term growth potential and helps you predict future revenue needs based on increasing customer retention rates or higher rates of customer acquisition.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR refers to the amount of money your company makes on a monthly basis from subscriptions or recurring revenue. This includes all recurring revenue that your company has collected in the previous month.\"}),/*#__PURE__*/e(\"p\",{children:\"What is a good MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"A good MRR will vary from business to business varying based on their price point and the number of subscriptions to their service/ product they have. A good MRR generally is one that is greater than all your costs and expenses indicating that your business is growing.\"}),/*#__PURE__*/e(\"h3\",{children:\"What revenue is not included in MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR does not include one-off revenue or charges on an invoice that have been fully discounted.\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I increase MRR for my business?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things that you can do to increase your monthly recurring revenue. First, you can focus on acquiring new customers. This can be done through marketing and sales efforts. Once you have acquired a customer, you can then work on retaining them. This can be done by providing great customer service and delivering on your promises.\"}),/*#__PURE__*/e(\"p\",{children:\"Another way to increase your monthly recurring revenue is to upsell your existing customers. This could be done by offering them additional services or products that they can purchase.\"}),/*#__PURE__*/e(\"p\",{children:\"The most effective, and often the quickest way to give your MRR a boost is to save more customers from leaving or cancelling their subscription.i\"})]});export const richText70=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"MRR Churn is a metric that measures the amount of Monthly recurring revenue (MRR) that is lost each month as a result of Customer churn.\"})]});export const richText71=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is MRR churn calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate MRR churn the total amount of lost MRR from each individual customer who has churned in the period is totalled together.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating MRR churn is:MRR churn = MRR charged last month but not this month, for each customer\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is MRR churn important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR Churn is important because it allows companies to track the amount of revenue that is being lost each month as a result of customer churn. It is also a helpful metric for identifying trends in customer churn over time.\"}),/*#__PURE__*/e(\"p\",{children:\"By tracking MRR Churn, companies can take steps to reduce the amount of revenue that is being lost each month due to customer churn.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is included in the calculation of MRR Churn?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate MRR Churn, you will need the following information:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The total number of customers at the beginning of the month\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The total number of customers at the end of the month\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The total amount of MRR at the beginning of the month\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The total amount of MRR at the end of the month\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Once you have this information, you can calculate MRR Churn by subtracting the total amount of MRR at the end of the month from the total amount of MRR at the beginning of the month, and then dividing this number by the total number of customers at the beginning of the month.For example, if a company has 100 customers and the total amount of MRR at the beginning of the month is $1,000, and the total amount of MRR at the end of the month is $950, the company\u2019s MRR Churn for that month would be 4.76%.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good MRR Churn amount?\"}),/*#__PURE__*/e(\"p\",{children:\"There is no one-size-fits-all answer to this question, as the ideal MRR Churn rate will vary from company to company.\"}),/*#__PURE__*/e(\"h3\",{children:\"How can I reduce my company\u2019s MRR Churn?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a number of steps you can take to reduce your company\u2019s MRR Churn rate, such as:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Improving customer service\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Offering more value to customers\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Introducing an involuntary churn tool to retry card payments\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Survey customers that are leaving to find out how you can improve your product(s)\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Incentivise customer to stay with targeted offers at the point of cancellation\"})})]}),/*#__PURE__*/e(\"h3\",{children:\"What are the consequences of having a high MRR Churn?\"}),/*#__PURE__*/e(\"p\",{children:\"A high MRR Churn amount can have a number of negative consequences for a company, such as a loss of revenue, a decline in customer satisfaction, and a decrease in customer retention.\"})]});export const richText72=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"If you're a startup founder, growth rate is one of the most important metrics to track. Why? Because it's a leading indicator of your company's health. MRR growth rate is the month-over-month percentage change in your company's recurring revenue. In other words, it's the rate at which your recurring revenue is growing (or shrinking) each month.\"}),/*#__PURE__*/e(\"p\",{children:\"MRR growth rate is also a helpful metric for goal setting. If you know your company's MRR growth rate, you can set goals for how much you want to grow your MRR each month. For example, if your company's MRR is $10,000 and you want to grow it by 10% each month, your goal for next month would be $11,000.\"})]});export const richText73=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is MRR growth rate calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"texMRR growth rate or otherwise known as Net MRR growth rate is calculated by taking the difference between your current MRR and the previous MRR and dividing it by your former MRR. A double digit growth rate indicates a strong, resilient subscription business.t\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating MRR growth rate is:\"}),/*#__PURE__*/e(\"p\",{children:\"MRR growth rate % = (Net MRR Current Month - Net MRR Last Month) / Net MRR Last Month * 100\"}),/*#__PURE__*/e(\"p\",{children:\"You\u2019ll need to have already calculated the net MRR for this month and the last:\"}),/*#__PURE__*/e(\"p\",{children:\"Net MRR = New MRR + Reactivation MRR + Expansion MRR - Churn MRR - Downgrades MRR.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If your company's Net MRR was $10,000 last month and $11,000 this month, your MRR growth rate would be 10% (($11,000-$10,000)/$10,000).\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is MRR growth rate important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"MRR growth rate is important because it's a leading indicator of your company's health. If your MRR is growing, it's a good sign that your business is on the right track. Conversely, if your MRR is shrinking, it's a red flag that something is wrong.\"}),/*#__PURE__*/e(\"h3\",{children:\"What's a good MRR growth rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There is no magic number when it comes to MRR growth rate. What's important is that you're growing at a healthy rate. A good rule of thumb is to aim for 10-20% month-over-month growth.\"}),/*#__PURE__*/e(\"h3\",{children:\"How do I improve my MRR growth rate?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few different ways to improve your MRR growth rate. One way is to increase your prices. Another way is to add more features to your product or service. And a third way is to acquire and retain more customers.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText74=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Net dollar retention is a key metric for any subscription business. It's a measure of how much revenue a company retains from its customers on a net basis, after accounting for churn. In other words, it's a way to gauge whether a company is growing its business by acquiring new customers, or simply holding on to the ones it already has.\"}),/*#__PURE__*/e(\"p\",{children:\"It is also commonly referred to as Net retention rate or Net revenue retention. On the revenue side this includes expansion revenue (upsells, crossells) and the churn is formed from (cancellations, downgrades and contract expirations).\"}),/*#__PURE__*/e(\"p\",{children:\"The Net dollar retention rate is a good way to measure a company's health over time. If a company is growing its business, you would expect to see a positive net dollar retention rate. If a company is losing customers, you would expect to see a negative net dollar retention rate.\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things to keep in mind when interpreting Net dollar retention rates. First, it's important to remember that net dollar retention only measures recurring revenue. It doesn't take into account one-time or non-recurring revenue. Second, Net dollar retention rates can be affected by changes in pricing. If a company raises its prices, it will likely see a decrease in its net dollar retention rate, even if it doesn't lose any customers.\"}),/*#__PURE__*/e(\"p\",{children:\"Finally, Net dollar retention rates can be affected by changes in the mix of customers a company has. For example, if a company acquires a new customer who has a higher churn rate than the company's average customer, that will likely impact the Net dollar retention rate.\"})]});export const richText75=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Net dollar retention (NDR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"Net dollar retention is the total revenue a business generates after customer churn, divided by the MRR at the start of the month.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Net dollar retention (NDR) is:NDR = (Existing MRR + Upgrades MRR - Downgrades MRR - Churn MRR) / Existing MRR *100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"At the beginning of May your MRR is $12,000 and after expansions (upsells, crossells) during May it increases to $15,000. The churn for the month of May was $2,000.\"}),/*#__PURE__*/e(\"p\",{children:\"This means that you end the month on $13,000. $15,000 MRR (including expansions) - $2,000 churn.\"}),/*#__PURE__*/e(\"p\",{children:\"This $13,000 is divided by the original MRR of $12,000, which gives you a net revenue retention rate of 108.33%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Net dollar retention (NDR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Net dollar retention is important because it is a key sign as to whether your company is growing. A positive net revenue retention is a sign that you have a low churn rate and are able to achieve positive growth through upsells and expansions. If a company is losing customers, you would expect to see a negative Net dollar retention rate.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good net retention rate?\"}),/*#__PURE__*/e(\"p\",{children:\"A good Net dollar retention rate is a rate that is above or around your industry standard. This varies from industry to industry. The key aim of your net retention rate is to be positive allowing you to grow.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between GRR and NDR?\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s look at the 2 calculations side-by-side:NRR = (Existing MRR + Upgrades MRR - Downgrades MRR - Churn MRR) / Existing MRR *100GRR = (Existing MRR - Churn MRR) / Existing MRR *100Gross revenue retention focuses on how well a business retains existing customer revenue, but ignoring any upgrades and downgrades within the period. Whilst Net dollar retention includes both upgrades and downgrades within the rate calculation, to factor in how the business is retaining and expanding existing customer revenues.\"}),/*#__PURE__*/e(\"h3\",{children:\"What factors can impact net dollar retention?\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things that can impact net dollar retention, including changes in pricing, changes in the mix of customers, and one-time or non-recurring revenue.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText76=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Focus on just this month\u2019s expansion and contraction of the business. Net MRR represents all MRR movements in the month, without including the existing customer base. This metric is a useful way of tracking the health of a business, as it provides a clear picture of the amount of revenue that is being generated on a monthly basis.\"})]});export const richText77=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Net MRR calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The calculation of Net MRR includes all revenue that is generated on a monthly basis, minus all churn, downgrades and any refunds or discounts that have been applied. This metric does not include one-time or annual payments.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Net MRR is:Net MRR = New MRR + Reactivation MRR + Expansion MRR - Churn MRR - Downgrades MRR.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s say your MRR breakdown this month is as follows:\"}),/*#__PURE__*/e(\"p\",{children:\"New MRR: $250\"}),/*#__PURE__*/e(\"p\",{children:\"Reactivation MRR: $50\"}),/*#__PURE__*/e(\"p\",{children:\"Expansion MRR: $300\"}),/*#__PURE__*/e(\"p\",{children:\"Churn MRR: $300\"}),/*#__PURE__*/e(\"p\",{children:\"Downgrades MRR: $50\"}),/*#__PURE__*/e(\"p\",{children:\"Your Net MRR calculation would show that your business has grown by $250 this month:\"}),/*#__PURE__*/e(\"p\",{children:\"($250 + $50 + $300 - $300 - $50) = $250 (Net MRR).\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Net MRR important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Net MRR is important because it is a good indicator of the health of a business. If a business is growing, then its Net MRR will also increase. This metric can also be used to track the progress of a business, as it can show whether a business is increasing or decreasing its revenue.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between Net MRR and Gross MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"Net MRR is different from Gross MRR in that it takes into account any refunds or discounts that have been applied. Gross MRR does not include these factors in its calculation.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good Net MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"There is no definitive answer to this question, as it will vary from business to business. However, a business with a positive Net MRR is typically growing and increasing its revenue.\"})]});export const richText78=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Net Negative churn, also referred to as net negative revenue churn or negative revenue churn, is when expansion revenue from existing customers surpasses churned revenue. To put it simply, the revenue increase from current customers is greater than the revenue loss from customers who churn (cancel) with your subscription business. It is seen in SaaS industries as a great position to strive towards and is shown as a percentage.\"}),/*#__PURE__*/e(\"p\",{children:\"One important key factor is that the negative churn metric does not include net new customers. It is based on the current customer base.\"})]});export const richText79=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Net negative churn in SaaS calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Net negative churn in SaaS is:Net negative churn rate = Upgrade MRR / MRR Churn\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Expansion Revenue = $5,000\"}),/*#__PURE__*/e(\"p\",{children:\"Lost Monthly Revenue = $4,500\"}),/*#__PURE__*/e(\"p\",{children:\"$5,000/$4,500= 111% Net Negative Churn Rate\"}),/*#__PURE__*/e(\"h3\",{children:\"Question\"}),/*#__PURE__*/e(\"p\",{children:\"To increase your negative churn there are two aspects which can be improved.\"}),/*#__PURE__*/e(\"p\",{children:\"Firstly you can focus on the expansion of revenue from your current customers. This can be done through a few different ways.\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Cross selling\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Upgrading customers to different pricing plans\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Selling of additional licences to the service (Common in SaaS)\"})})]}),/*#__PURE__*/e(\"p\",{children:\"The second element is to decrease your churn rate from your customers. This can be done through pricing, better customer support or using Upzelo to understand why customers want to churn and then work to retain them.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the benefit of net negative churn?\"}),/*#__PURE__*/e(\"p\",{children:\"The benefit of net negative churn is that it means that your business is gaining additional revenue from your current customer base that is outweighing the loss in revenue that you are seeing from your customer churn. This will help to improve your recurring revenue and allow you to grow your business.\"})]});export const richText80=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Net revenue retention or Net retention rate (NRR) is a key metric for any subscription business. It's a measure of how much revenue a company retains from its customers on a net basis, after accounting for churn. In other words, it's a way to gauge whether a company is growing its business by acquiring new customers, or simply holding on to the ones it already has.\"}),/*#__PURE__*/e(\"p\",{children:\"It is also commonly referred to as Net dollar retention, On the revenue side this includes expansion revenue (upsells, crossells) and the churn is formed from (cancellations, downgrades and contract expirations).\"}),/*#__PURE__*/e(\"p\",{children:\"The Net revenue retention rate is a good way to measure a company's health over time. If a company is growing its business, you would expect to see a positive Net revenue retention rate. If a company is losing customers, you would expect to see a negative Net revenue retention rate.\"}),/*#__PURE__*/e(\"p\",{children:\"There are a few things to keep in mind when interpreting Net revenue retention rates. First, it's important to remember that it only measures recurring revenue. It doesn't take into account one-time or non-recurring revenue. Second, the rate can be affected by changes in pricing. If a company raises its prices, it will likely see a decrease in its Net revenue retention rate, even if it doesn't lose any customers.\"}),/*#__PURE__*/e(\"p\",{children:\"Finally, Net revenue retention rates can be affected by changes in the mix of customers a company has. For example, if a company acquires a new customer who has a higher churn rate than the company's average customer, that will likely impact the Net revenue retention rate.\"})]});export const richText81=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Net revenue retention / Net retention rate (NRR) calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"Net revenue retention is the total revenue a business generates after customer churn, divided by the MRR at the start of the month\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Net revenue retention / Net retention rate (NRR) is:\"}),/*#__PURE__*/e(\"p\",{children:\"NRR = (Existing MRR + Upgrades MRR - Downgrades MRR - Churn MRR) / Existing MRR *100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"At the beginning of May your MRR is $12,000 and after expansions (upsells, crossells) during May it increases to $15,000. The churn for the month of May was $2,000.\"}),/*#__PURE__*/e(\"p\",{children:\"This means that you end the month on $13,000. $15,000 MRR (including expansions) - $2,000 churn.\"}),/*#__PURE__*/e(\"p\",{children:\"This $13,000 is divided by the original MRR of $12,000, which gives you a net revenue retention rate of 108.33%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Net revenue retention / Net retention rate (NRR) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Net revenue retention is important because it is a key sign as to whether your company is growing. A positive net revenue retention is a sign that you have a low churn rate and are able to achieve positive growth through upsells and expansions.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is a good net retention rate?\"}),/*#__PURE__*/e(\"p\",{children:\"A good net retention rate is a rate that is above or around your industry standard. This varies from industry to industry. The key aim of your net retention rate is to be positive allowing you to grow.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between GRR and NRR?\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s look at the 2 calculations side-by-side:NRR = (Existing MRR + Upgrades MRR - Downgrades MRR - Churn MRR) / Existing MRR *100GRR = (Existing MRR - Churn MRR) / Existing MRR *100Gross revenue retention focuses on how well a business retains existing customer revenue, but ignoring any upgrades and downgrades within the period. Whilst Net revenue retention includes both upgrades and downgrades within the rate calculation, to factor in how the business is retaining and expanding existing customer revenues.\"})]});export const richText82=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"If you're like most companies, acquiring new customers is essential to your success. But what's even more important is understanding why those customers subscribed in the first place.\"}),/*#__PURE__*/e(\"p\",{children:\"One way to do this is to analyse your new subscription customers. This can be done through surveys, interviews, or even simply looking at customer data. Once you have a good understanding of why your new customers subscribed, you can then start to focus on how to keep them engaged and ensure they remain subscribers for the long term.\"}),/*#__PURE__*/e(\"p\",{children:\"This is an important process because it can help you to identify any potential issues that could cause customers to unsubscribe. It can also help you to fine-tune your marketing and retention strategies. So, if you're not already doing so, start analysing your new subscription customers today. It could be the key to unlocking your company's success.\"})]});export const richText83=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is New customers counted?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate how many new customers your business has acquired in a given period, you\u2019ll need to count new customer charges in the period where there was no previous charge for the customer in any previous period. If they do, they should be classified as reactivating customers.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating New customers is:New customers = ( Count of customers who were charged this month but not any previous month) x100\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is New customers important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"This is an important process because it can help you to identify any potential issues that could cause customers to unsubscribe. It can also help you to fine-tune your marketing and retention strategies.\"})]});export const richText84=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"New monthly recurring revenue, or New MRR, is a metric that measures the amount of revenue that a company can reasonably expect to add to it\u2019s Existing MRR on a monthly basis. This metric is important for companies to track because it provides insight into the health of the business and its ability to grow through new customer acquisition.\"}),/*#__PURE__*/e(\"p\",{children:\"New MRR is simply a measure of the revenue that your business has added in the current month to its existing MRR. This could be from subscriptions, membership fees, or any other type of recurring revenue stream. New MRR is important to continually monitor because it provides a stable and predictable income that can be used to finance growth and expansion.\"})]});export const richText85=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is New MRR calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"New monthly recurring revenue includes all of the revenue that is added to existing MRR in the current period. This includes recurring revenue from subscription plans, one-time fees, and other recurring revenue streams.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating New MRR is:New MRR = Sum of all recurring charges where the customer has a charge this month, but not in the any previous month.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Last month you sent 50 invoices to recurring subscription customers. Each of the invoices have a single line item / charge for $99. This month you sent 60 invoices, with the same single charge.\"}),/*#__PURE__*/e(\"p\",{children:\"You check every previous charge and invoice your business has raised and find that none of the additional 10 charges were for a customer that has been invoices before, so none of these are for Reactivated customers.\"}),/*#__PURE__*/e(\"p\",{children:\"Therefore, the 10 new charges of $99 are added together to make $990 of New MRR.\"}),/*#__PURE__*/e(\"h3\",{children:\"Does New MRR include all new charges this month?\"}),/*#__PURE__*/e(\"p\",{children:\"Not quite. New MRR is specifically a sum or charges in a month where:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The customer was not active previously (therefore they would classified in Reactivation MRR)\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The additional MRR is for a new customer, not an existing customer\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"New MRR does not include one-off charges, setup fees or contracted future revenues.\"})})]})]});export const richText86=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Incentives other than monetary compensation, such as experiences, products, or services, that can offer a more personalized and memorable reward option, often leading to higher emotional value and stronger loyalty.\"})]});export const richText87=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"An order refers to the request made by a customer to purchase one or more products or services from an online store.\"})]});export const richText88=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"When is an order confirmed?\"}),/*#__PURE__*/e(\"p\",{children:\"This process typically involves the selection of items, addition of these items to a virtual shopping cart, and the completion of a purchase transaction through a checkout process. The order becomes official once the customer provides payment information and the merchant confirms the transaction, often via an automated email confirmation.\"})]});export const richText89=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"A detailed summary of the rewards that customers have redeemed using their points.\"})]});export const richText90=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"An in-depth overview of how customers have accumulated their loyalty points.\"})]});export const richText91=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The variance between points earned, redeemed, expired, and manually adjusted.\"})]});export const richText92=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total number of orders processed through your Upzelo loyalty program.\"})]});export const richText93=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total revenue generated via your Upzelo loyalty program\"})]});export const richText94=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Loyalty points are a type of reward that businesses offer to customers as part of a loyalty program. Customers earn these points by making purchases, engaging in certain behaviors, or reaching specific milestones that the business has set.\"})]});export const richText95=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How are points used in a loyalty program?\"}),/*#__PURE__*/e(\"p\",{children:\"Once accumulated, these points can typically be redeemed for discounts, products, services, or other perks, incentivizing customers to continue their patronage. \"}),/*#__PURE__*/e(\"p\",{children:\"The system is designed to enhance customer retention by rewarding ongoing engagement and spending, encouraging repeat business. \"}),/*#__PURE__*/e(\"p\",{children:\"Points can vary in value and redemption options, often depending on the level of the customer's participation in the program or their achieved tier. This system not only fosters a deeper connection between customers and the brand but also provides valuable data that businesses can use to tailor their offerings and marketing strategies.\"})]});export const richText96=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Redemption in a loyalty program refers to the process by which customers exchange accumulated loyalty points or rewards for various benefits or incentives offered by the program.\"})]});export const richText97=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How to make redemption effective\"}),/*#__PURE__*/e(\"p\",{children:\"These rewards can range from discounts, products, services, to exclusive experiences or access. Redemption acts as a key moment of engagement within the loyalty program, reinforcing the value of being a loyal customer and encouraging continued participation and patronage.\"}),/*#__PURE__*/e(\"p\",{children:\"The process is designed to be straightforward, allowing customers to easily understand how they can earn rewards and what they need to do to redeem them. Effective redemption processes are crucial for the success of a loyalty program, as they directly impact customer satisfaction and perception of the brand. When customers find value in the rewards and find the redemption process convenient and rewarding, it significantly enhances their loyalty to the brand and encourages repeat business.\"}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]});export const richText98=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total count of order placed via referral links from your loyalty program.\"})]});export const richText99=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total revenue from referred customers within your loyalty program.\"})]});export const richText100=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The total points customers have used to claim rewards they've earned.\"})]});export const richText101=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Customer referrals occur when existing customers recommend your products or services to friends, family, or colleagues. This word-of-mouth marketing strategy is highly effective because it leverages the trust and credibility built between the customer and their network. People are more likely to try a new product or service when it's recommended by someone they trust, making referrals a powerful tool for acquiring new customers.\"})]});export const richText102=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"The benefits of using customer referrals\"}),/*#__PURE__*/e(\"ul\",{children:/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Cost-Effectiveness:\"}),\" Acquiring customers through referrals is often more cost-effective than traditional advertising or marketing strategies. Since your existing customers are doing the legwork, the cost associated with acquiring a new customer through referrals is typically lower.\"]})})}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(236, 236, 236)\",\"--framer-text-transform\":\"none\",\"--list-style-type\":\"none\"},children:[/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Higher Conversion Rates:\"}),\" Referrals come with a built-in level of trust, leading to higher conversion rates compared to other marketing channels. Individuals who come to your business through a referral are more likely to make a purchase because they've been recommended by a trusted source.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Improved Customer Loyalty:\"}),\" When customers refer others to your business, they are essentially putting their own reputation on the line. This act strengthens their emotional investment in your brand, leading to increased loyalty. Additionally, customers who join through a referral are likely to have a higher lifetime value, as they tend to be more engaged and satisfied.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/t(\"li\",{\"data-preset-tag\":\"p\",children:[/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Enhanced Brand Reputation:\"}),\" Customer referrals naturally boost your brand's reputation. As satisfied customers share their positive experiences, your brand is perceived as trustworthy and reliable, helping to build your brand's reputation organically.\"]}),/*#__PURE__*/e(\"p\",{children:/*#__PURE__*/e(\"br\",{className:\"trailing-break\"})})]}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/t(\"p\",{children:[/*#__PURE__*/e(\"strong\",{children:\"Builds a Community of Advocates:\"}),\" A successful referral program can create a community of brand advocates. These customers are not only loyal to your brand but are also actively promoting it, essentially becoming an extension of your marketing team.\"]})})]}),/*#__PURE__*/e(\"p\",{children:\"Implementing a structured referral program that rewards both the referrer and the referee can significantly amplify these benefits, encouraging more customers to participate and ultimately driving growth for your business.\"})]});export const richText103=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Reactivation MRR is a breakdown of Monthly recurring revenue (MRR) specifically for customers that previously had charges from a subscription that stopped, and that have now started again or re-subscribed. This metric is important because it allows businesses to track the success of their customer reactivation efforts and to identify areas where improvements can be made.\"})]});export const richText104=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Reactivation MRR calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"Take all of your new charges this month, ie. a customer that did not have a charge last month and do an additional check to see if they ever had a charge previously. If they do, they\u2019re classified as a re-activation, not New MRR.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Reactivation MRR is:Reactivation MRR = Sum of MRR from charges in the period, where the customer had no charges in the last period.\"}),/*#__PURE__*/e(\"p\",{children:\"Upzelo does not factor paused subscriptions in the Reactivation MRR calculation.\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Customer X had a subscription for $100 per month, and decided to cancel their subscription, with an end date of June 20th. They then reactivated their subscription on August 10th.\"}),/*#__PURE__*/e(\"p\",{children:\"Customer Y had a subscription for $200 per month, and paused their subscription for May, June and July. But decided to restart the subscription on August 3rd.\"}),/*#__PURE__*/e(\"p\",{children:\"On September 20th, a Reactivation MRR calculation would conclude:\"}),/*#__PURE__*/e(\"p\",{children:\"For customer X, the $100 reactivation MRR would be included in MRR between their first invoice on August 10th, and the end of the \u201CReactivation Period\u201D, of September 10th. So, there would be no Reactivation MRR on September 20th report. The $100 would now be \u201CExisting MRR\u201D.\"}),/*#__PURE__*/e(\"p\",{children:\"For customer Y, the $200 would not be included as Reactivation MRR at all, because it was a paused subscription. The $200 would remain within Existing MRR.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Reactivation MRR important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Customers who have chosen to come back and reactivate may often have tried out a competitor or competitive product. Or they no longer had a need for your product, but the need came back. Measuring your reactivation MRR, or at least extracting it from your core.\"}),/*#__PURE__*/e(\"p\",{children:\"New MRR measures ensures this event is not incorrectly measured in your new customer calculations.\"}),/*#__PURE__*/e(\"h3\",{children:\"What are some ways to improve Reactivation MRR?\"}),/*#__PURE__*/e(\"p\",{children:\"Increasing the number of reactivated customers by running winback campaigns, will increase the amount of monthly recurring revenue generated from reactivated customers. Winback campaigns come in all different shapes and sizes, such as:\"}),/*#__PURE__*/t(\"ul\",{children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Publicising your product releases, to entice users back wirth features they thought were lacking.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Incentivising previous customers to come back, because it\u2019s likely cheaper than trying to win new customers.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Staying in touch with customers that leave.\"})})]})]});export const richText105=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Acquiring new customers is essential for businesses to grow, but it can also be one of the most costly investments a company makes. In order to ensure that acquisition costs are covered and that acquisition efforts are profitable, businesses need to track and calculate their Recovering customer acquisition cost, or RCAC.\"}),/*#__PURE__*/e(\"p\",{children:\"Recovering Customer Acquisition Cost (RCAC) is a metric used by subscription businesses to calculate how long it will take them to recover the Customer Acquisition Cost (CAC). RCAC is normally measured in months but can be measured in years depending on contract length. One use for RCAC is the ability to work out what level of marketing budget you can use to ensure profitability going forwards.\"}),/*#__PURE__*/e(\"p\",{children:\"By understanding how much it costs to acquire new customers, businesses can set budgets and targets, and track their progress over time. 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This will give you your RCAC number.xt\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Recovering customer acquisition cost (RCAC) is:\"}),/*#__PURE__*/e(\"p\",{children:\"RCAC = Customer Acquisition Cost (CAC)/ [(Customer Lifetime Value (CLTV) \\xf7 Customer Lifetime (Measured in Months)]\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"Let\u2019s say your CAC is $9000, and your CLTV is $21,000 and your Average customer lifetime is 10 months.\"}),/*#__PURE__*/e(\"p\",{children:\"$21,000/10 = $2100.\"}),/*#__PURE__*/e(\"p\",{children:\"$9,000/$2,1000 = 4.28\"}),/*#__PURE__*/e(\"p\",{children:\"Recovering Customer Acquisition Cost (RCAC)= 4.28 Months.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Recovering customer acquisition cost (RCAC) important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"RCAC is important because it allows businesses to track and optimise their acquisition efforts. By understanding how much it costs to acquire new customers, businesses can make informed decisions about where to allocate their resources. Additionally, RCAC can help businesses identify acquisition opportunities and track their progress over time.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is Customer acquisition cost?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer acquisition cost, or CAC, is the cost of acquiring new customers. This can include the cost of marketing, advertising, sales, and other efforts to attract and convert new customers.\"}),/*#__PURE__*/e(\"h3\",{children:\"What is the difference between CAC and RCAC?\"}),/*#__PURE__*/e(\"p\",{children:\"Customer acquisition cost, or CAC, is the cost of acquiring new customers. 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But did you know that there are a few things you can do to minimise the impact of refunds on your business?\"}),/*#__PURE__*/e(\"p\",{children:\"Here are a few tips for handling refunds in a subscription business:\"}),/*#__PURE__*/t(\"ol\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Communicate with your customers. If a customer is unhappy with their purchase, reach out to them and see if there's anything you can do to resolve the issue. Often, a simple refund is all it takes to keep a customer happy.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Offer partial refunds. If a customer is unhappy with part of their purchase, offer them a partial refund. This can often be a more palatable option for customers than a full refund.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Offer alternatives to refunds. If a customer is requesting a refund, offer them alternatives such as a credit towards their next purchase, or a discount on a future purchase.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"Don't take it personally.\"})})]})]});export const richText110=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"Revenue is the total amount of money a company earns from selling its products and services. For SaaS businesses, revenue is counted upon the delivery of the service/product. 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The customer has agreed to pay for the future provision of a service but they have not received that service or been charged for it.\"}),/*#__PURE__*/e(\"p\",{children:\"Example: A customer on an annual subscription but is billed monthly.\"}),/*#__PURE__*/e(\"p\",{children:\"If the customer has an annual subscription worth $1200 being charged $100 a month after two months you will have collected $200 in revenue and have a revenue backlog of $900.\"}),/*#__PURE__*/e(\"p\",{children:\"Contracted, but yet to be billed revenue is not factored into your Monthly recurring revenue (MRR) calculation in Upzelo.\"})]});export const richText113=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"Definition\"}),/*#__PURE__*/e(\"p\",{children:\"The Revenue churn rate expresses your customer churn rate as a monetary value. You may have a low churn rate, but if you\u2019re churning your biggest customers then there\u2019s still a problem to address. This metric is important for subscription-based businesses as it can give Insights into customer satisfaction and whether the company's pricing is sustainable.\"}),/*#__PURE__*/e(\"p\",{children:\"By reducing revenue churn rate, businesses can improve their bottom line and ensure that they are growing sustainably. I.e. They are not growing through acquisition but continually battling a leaking bucket that is getting worse over time.\"})]});export const richText114=/*#__PURE__*/t(n.Fragment,{children:[/*#__PURE__*/e(\"h3\",{children:\"How is Revenue churn rate calculated?\"}),/*#__PURE__*/e(\"p\",{children:\"To calculate revenue churn rate, you will need to know the total revenue for the month and the total amount of revenue lost due to churn. To get the total amount of revenue lost due to churn, you will need to know the number of customers that cancelled their subscription and the average monthly revenue per customer.\"}),/*#__PURE__*/e(\"p\",{children:\"The formula for calculating Revenue churn rate is:Revenue churn rate % = ((MRR Churn + Downgrades MRR) / Existing MRR ) * 100\"}),/*#__PURE__*/e(\"h3\",{children:\"Example:\"}),/*#__PURE__*/e(\"p\",{children:\"If your company has a monthly recurring revenue of $10,000 and loses $1,000 due to churn, your revenue churn rate would be 10%.\"}),/*#__PURE__*/e(\"h3\",{children:\"Why is Revenue churn rate important to measure?\"}),/*#__PURE__*/e(\"p\",{children:\"Revenue churn rate is a key metric for subscription-based businesses as it can give Insights into customer satisfaction and whether the company's pricing is sustainable. 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The customer pays a discounted price for these shipments, typically by committing to a certain number of shipments.\"}),/*#__PURE__*/e(\"p\",{children:\"How subscribe and save works:\"}),/*#__PURE__*/t(\"ul\",{style:{\"--framer-font-size\":\"16px\",\"--framer-text-alignment\":\"start\",\"--framer-text-color\":\"rgb(55, 65, 81)\",\"--framer-text-transform\":\"none\"},children:[/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"A customer selects a product from an online retailer\u2019s website or store and places it into their cart.\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"They then choose the frequency with which they would like to receive shipments of that product (i.e., once every two months).\"})}),/*#__PURE__*/e(\"li\",{\"data-preset-tag\":\"p\",children:/*#__PURE__*/e(\"p\",{children:\"The retailer sends out the shipment at the specified time, which is often accompanied by a discount for signing up for the subscription service.\"})})]}),/*#__PURE__*/e(\"p\",{children:\"Subscribing to a product or service can be beneficial to both the customer and the seller. 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