Metrics Glossary

The total revenue a business can reasonably expect from a single customer account throughout its relationship.

Income that a company can reliably anticipate every 30 days from active subscriptions.

The value of recurring revenue normalized to one year. ARR = MRR × 12.

The average revenue generated per user over a given period. Total Revenue ÷ Number of Users.

Like ARPU but only considers paying customers, excluding free users.

The percentage of revenue remaining after deducting the cost of goods sold (COGS).

Measures revenue retained from existing customers including expansion, contraction, and churn. >100% indicates growth.

The total cost of sales and marketing efforts needed to acquire a new customer.

Compares customer lifetime value to acquisition cost. A ratio of 3:1 or higher is generally healthy.

The number of months required to recover the cost of acquiring a customer.

The percentage of visitors who complete a desired goal, such as signing up or purchasing.

The ratio of users who click on a link to the total number of users who view the page or ad.

The amount paid for each click in a pay-per-click advertising campaign.

The cost of 1,000 ad impressions. Used to measure the efficiency of display advertising.

The average cost to acquire one paying customer through a specific channel or campaign.

The percentage of customers who stop using your product during a given time frame.

The percentage of customers who continue using your product over a given period. Retention = 1 - Churn.

The number of unique users who engage with your product on a given day.

The number of unique users who engage with your product within a 30-day period.

Measures how often users return to the product. Higher ratios indicate stronger engagement.

The percentage of users who convert from a free trial to a paid subscription.

Additional revenue from existing customers through upsells, cross-sells, or add-ons.

The percentage of new users who complete a key action that correlates with long-term engagement (the 'Aha moment').

The time it takes for a new user to experience the core value of your product.

A customer satisfaction metric that measures how likely users are to recommend your product. Ranges from -100 to +100.

The average amount of time users spend in a single session within your product.

The percentage of users who have used a specific feature at least once.

Measures how effectively existing users refer new users. K > 1 means viral growth.

The percentage increase in a key metric (users, revenue) over a specific period.

The rate at which a company is spending its capital before generating positive cash flow.

The amount of time a startup can operate before running out of money. Cash ÷ Monthly Burn Rate.