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Then, simply divide the amount related to new MRR sources by the percentage of MRR lost in the same period. 9. Expansion Revenue Expansion Revenue is an essential indicator for any company looking to raise revenue generated by existing customers. Since SaaS companies usually work with plans that can be upgraded, Expansion Revenue is crucial. A customer can, for example, start using the service with a basic plan, which is naturally cheaper than premium options. This way, it is already included in your Monthly Recurring Revenue calculation. However, the option to upgrade opens an interesting path for the company.
By opting for a more advanced plan, the customer increases the Denmark Phone Number Data revenue they generate for the business. Therefore, many companies focus on stimulating this upgrade as a way to compensate for the loss of other customers. To calculate the Expansion Revenue, just add up the additional value generated by subscription upgrades. 10. Net Promoter Score (NPS) Customer loss is a problem faced by every type of company, regardless of its size or segment. To avoid it becoming too big of an issue, you need to identify as early as possible the reasons that are driving customers to abandon your service.
With this in mind, it is easy to understand the importance of frequently measuring your customers’ satisfaction, right? This is what the Net Promoter Score seeks to do. Unlike the other indicators presented in this text, NPS is not based exclusively on mathematical calculations.in 2003 through an article published in the Harvard Business Review. Based on a simple and definitive question, the idea is to understand the level of contentment among consumers of any product or service. The question is, “On a scale of 0 to 10, how much would you recommend company X to a friend or colleague?” By gathering a significant number of responses, it is possible to separate customers into three groups. Those who answered between 0 and 6 are considered detractors.
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