Table of Contents
Baremetrics tracks 28 key subscription metrics with 8 powerful data-boosting features to help you analyze that data and gain deeper insights.
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The following is a detailed breakdown of the metrics Baremetrics tracks and the additional tools built into the platform to help you analyze that data. Remember, the possibilities for using this information to optimize your subscription business go far beyond what we can cover here!
Revenue Metrics
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue is all your recurring revenue normalized into a monthly amount. Analyze by customer geography, plan type, and more. Set clear goals for your revenue growth, with the flexibility to adjust them as needed. Don't miss a beat – make notations directly on the graph to remember key events like product launches, allowing you to visualize your success and easily track your business's overall health at a glance.
Annual Run Rate (ARR)
Annual Run Rate shows your current revenue projected out over 12 months. It assumes that nothing will change over the next year. In other words, it factors in no new customers joining (acquisitions), no existing customers leaving (churn), and no increase in business activity (expansions). While this scenario is improbable, it provides a baseline for business owners to assess performance over one year.
- Annual Recurring Revenue = (MRR * 12)
Net Revenue
This metric shows the actual money received on a day-by-day basis. It includes all payments, not just those from subscriptions.
- Net Revenue = Gross Volume (Recurring and Non-recurring) – Refunds
MRR Growth Rate
This metric is the percentage change in MRR from one month to the next. It could be calculated over any period, such as daily, weekly, monthly or yearly.
- MRR Growth rate = (Today’s MRR / 30 days ago MRR) -1, x100 and rounded.
Other Revenue
This metric accounts for all of the one-off charges your business receives. For example, usage charges, overages, and any payments not attached to a subscription. This information can also be added manually through the Baremetrics API.
Quick Ratio
In SaaS, the Quick Ratio expresses a basic measurement of the growth rate of a company. It refers to a value based on MRR growth compared to MRR churn. If your Quick Ratio is less than 1, your business is shrinking. If your Quick Ratio is between 1 and 4, you are growing at a healthy rate. If your Quick Ratio is greater than 4, you are growing rapidly.
- Quick Ratio = (New MRR + Expansion MRR + Reactivation MRR) / (Contraction MRR + Churned MRR)
(The SaaS Quick Ratio is not to be confused with other kinds of “Quick Ratios” used in financial analysis, such as the financial analysis metric used to measure the short-term liquidity of a company.)
MRR Movements
Active Subscriptions
This metric provides a comprehensive count of your active paying subscriptions. Additionally, you can explore and export detailed breakdowns of customer distributions across various plans, enabling more targeted insights into your customer base and their plan preferences.
New Subscriptions
This metric tracks new sign-ups within a date range you choose. You can see them by day, week, or month. It also shows you the weekdays with the most sign-ups. Use this to boost conversions! By scheduling targeted email campaigns for those peak days, you can reach more potential customers when they're most interested. This can lead to a higher conversion rate (more trials into paying customers).
Plan Quantities
This metric is crucial if you offer a 'per-seat licensing' model, where customers subscribe in multiples or by seat. Under this model, costs increase linearly, meaning a subscription for 10 users incurs a cost 10 times the base price. This metric aggregates the total number of subscribing entities (customer count) and the total number of seats across all subscribers (subscription quantity). This combined metric is beneficial in evaluating plan popularity by showing which subscriptions have the highest quantity of seats. Such insights can guide strategic decisions on pricing and plan optimization.
Upgrades
This metric tracks instances where customers increase their spending with your business. This encompasses both upgrades to pricier plans and automatic price increases after coupon expiration. Analyze the data by day or week to identify trends, and set goals directly within the platform to target specific improvements in customer lifetime value!
Downgrades
This metric identifies customers who switch from a higher-tier subscription to a lower-cost plan. This can encompass downgrades to cheaper plans, reductions in features or seat licenses, or even transitioning from a monthly to a yearly subscription (which technically lowers the recurring cost). While downgrades might raise concerns about churn, it's important to remember they don't always signal dissatisfaction. Some customers may require a different feature set or find a yearly plan more budget-friendly.
Failed Charges
This metric flags any failed payment attempts by your provider within the last 30 days. It acts as an early warning system, highlighting potential revenue at risk. The "at risk" table provides insights by identifying customers with soon-to-expire credit cards. This allows you to proactively reach out and update their payment information, minimizing further disruptions. You can promptly address these failed payments by using Recover to get some of those missing funds back into the hands of the business.
Refunds
The Refunds metric shows the money you’ve returned to your customers through a refund. This metric does not impact your MRR. Refunds are calculated directly into your expenses table and the date ranges show when refunds were issued.
Coupons
This metric displays the amount of money you are “losing” due to coupons applied to active subscribers.
Customer Information
Average Revenue Per User (ARPU)
Average Revenue Per User is a key metric that tells you how much money you're generating, on average, from each active customer over a specific period.
- ARPU = Monthly Recurring Revenue / Active Customers
This metric provides a valuable snapshot of your revenue trends and the overall value of your customers. By analyzing ARPU across different customer groups, you'll identify which segments are most profitable and potentially require strategic adjustments.
Average Sale Price (ASP)
Average Sale Price or ASP is presented as a 30-day rolling number. This means it is updated daily to reflect the average sales price based on the past 30 days of data, providing a constantly updated view of your sales performance.
- To calculate ASP, divide the total MRR generated from new customers by the number of new customers.
- For example, if a SaaS company earns $1,000 from 10 new customers, the ASP is $100 ($1,000 divided by 10).
Lifetime Value (LTV)
How much do your customers make you before they churn? LTV is the total revenue a business can reasonably expect from a single customer throughout their relationship. It helps understand the long-term value of customer relationships, guiding decisions around customer acquisition, retention strategies, and resource allocation. By analyzing LTV, you can gauge how much they should invest in acquiring new customers and maintaining existing ones.
- LTV = Average Monthly Recurring Revenue Per Customer / User Churn Rate
New Customers
This metric shows the customers going from a free plan, a trial, or no plan directly to a paid plan. Think of this as “New Paying Customers.” This metric also shows you what plan they selected and if/how much a coupon is applied for.
Active Customers
This metric shows customers who are active and actively paying. It does not include people on a free plan, trial, customers who are delinquent, or people who have paid you for a one-time purchase but not a recurring subscription.
Churned Customers
These are the customers who stopped using your company’s services. See your lost MRR and the LTV of the customer who left here. This would be a great opportunity to reach out with either a coupon to try and win them back, or more importantly, for feedback on how you can better your service.
Reactivations
Reactivations are when a previous customer from a trial or a paid subscription realizes how amazing you are and comes back!
Churn
User Churn
User Churn is a percentage showing the number of customers who left in the previous 30-day period relative to your total customer count 30 days ago.
- User Churn = (Cancelled Customers in the last 30 days / Active Customers 30 days ago) x 100
Revenue Churn
Revenue Churn is a percentage showing the amount of MRR that has been lost in the last 30 days relative to your total MRR 30 days ago.
- Revenue Churn = (MRR Lost to Downgrades & Cancellations in the last 30 days / MRR 30 days ago) x 100
Net Revenue Churn
Net Revenue Churn shows the lost revenue from cancellations and downgrades.
- Net Revenue Churn = (Churned MRR – Expansion MRR) / Starting MRR 30 days ago x 100
Net Revenue Retention (NRR)
Net Revenue Retention is the measure of revenue maintained from existing customers, accounting for any expansions (i.e., upsells or cross-sells) and contractions (i.e., churn or downgrades). It reflects the ability to retain and potentially grow the revenue from existing customers.
- NRR = 100% − ((Churned MRR - Expansion MRR) ÷ Starting MRR 30 days ago x 100)
Churned Subscriptions
This shows you the subscribers who have downgraded from one subscription to a free plan, as well as true cancelations (the people who are no longer paying you). This information will show you great opportunities to reach out and win back some clients and collect some information.
Revenue Boosting Features
Forecasting
Forecasting is your tool for modeling your metrics out into the future so you can get a better idea of how your metrics will look.
Trial Insights
Trial Insights allows you to monitor the behavior of customers during their trials. See Conversion Rate, Average Trial Length, Active Trials, New Trials, and Converted Trials for any point in time.
Augmentation
Augmentation allows you to easily pipe in 3rd party data about your customers so you can amplify your customer’s profiles on Baremetrics.
Benchmarks
Benchmarks is a tool that lets you compare your metrics with other companies of your size or industry directly in the Baremetrics dashboard.
People Insights
People Insights pulls information about your customers out of the internet so you can make use of deeper profiling information, such as their country, company size, LinkedIn information, and more.
Recover
Recover is an automatic dunning tool that reaches out to your customers who have failed payments, targets them with customized copy, and encourages them to update their credit card information.
Segmentation
Segmentation lets you look at specific segments of your customer base. For example, you can see churned customers by what plan they’re using. This helps you understand which plans are working for your customers, and which plans aren’t.
Cancellation Insights
Cancellation Insights is a tool that automatically reaches out to customers who cancels and gets them to communicate about why they canceled. It even prompts them to sign up for a call to discuss their situation with one of your teammates.
Conclusion
If you want to know these metrics about your customers, sign up for the Baremetrics free trial! You can see everything you want to know about your customers and even get more out of your data with our extra features.
