You can also visualize how MRR is positively influenced by customers switching to more expensive subscriptions ( expansion MRR ) or negatively affected by customer loss ( churn MRR ). We will discuss this last point in more detail shortly. Also, read Tunisia WhatsApp Number List Subscriptions as a revenue model: 5 tips 2. Customer Acquisition Rate (CAR) It’s good to know that your subscription business model can generate recurring revenue.
The question now is The Desired
Whether you are also capable of constantly recruiting new customers so that the MRR can grow even further. An important metric to look at in this regard is the customer acquisition rate (CAR). The CAR indicates the percentage by which the customer base increases in a certain period as a result of newly acquired subscribers.
In the formula The Desired
CAR number of new customers in period n / total number of customers at the beginning of period n) x 100%. So suppose we start with 500 customers in a given month and we acquire 50 new subscribers that month, then the CAR is (50 / 500) x 100% = 10%. A positive CAR means we are able to bring in new subscribers. 3. Volume Churn The natural enemy of acquisition is churn or customer loss.