ARR vs ACV vs TCV

ARR vs ACV vs TCV

What comes to your mind when you read the letters ARR? Well, if you’re in the financial market you may refer to the NYSE:ARR stock, if you’re a tech guy you may think of Application Request Routing; but for us SaaS professionals, ARR means two things only: Annual Run Rate and Annual Recurring … Read more

What Is Customer Engagement Score and How to Calculate It

What is Customer Engagement Score and How to Calculate It

At its core, customer engagement score is a single metric that is used to measure how engaged your customers are. The metric is represented by a number based on customer activity and usage of your product or service — the higher the number the happier and more engaged the customer. Together with customer … Read more

The Rule of 40 for SaaS and Subscription Business

The Rule of 40 for SaaS and Subscription Business

The famous investor and also founder of Techstars, Brad Feld — recently wrote a post on this blog titled “The Rule of 40% for a Healthy SaaS Business”. A couple of days later, Tomasz Tunguz an also famous venture capitalist at Redpoint Ventures also wrote a post about it, titled “The Data Behind The Rule of 40%”. … Read more

Customer Churn vs Revenue Churn, Understand the Difference

Customer Churn vs Revenue Churn, Understand the Difference

Churn is the enemy of any subscription company. In a general definition, churn is the number or percentage of subscribers to a service that discontinues their subscription to that service in a given time period. In order for a company to expand its clients base, its growth rate must exceed its churn … Read more