Metrics with Benchmarks Metrics

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Gross Revenue Retention Rate

Gross Revenue Retention (GRR) Rate is the percentage of recurring revenue retained from existing customers in a defined time period, including downgrades, and cancels. It does not include any expansion revenue. GRR is also commonly referred to as Gross Renewal Rate.

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Lead Conversion Rate

The Lead Conversion Rate is the percentage of visitors who come to your website and are captured as leads. This is one of the most important top-of-the-funnel conversion metrics. It’s an indicator of your ability to attract the right target audience and the efficiency at which your website is turns them into leads.

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Logo Churn

Logo Churn is the enemy of any subscription company. Logo Churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period.

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MQL to SQL Conversion Rate

MQL (Marketing Qualified Lead) to SQL (Sales Qualified Lead) conversion rate is the percentage of MQLs that are converted to an SQL. An MQL is a lead that marketing believes meets the criteria of a qualified prospect, and an SQL is a lead that sales has independently qualified and believes meets the criteria of a qualified prospect.

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MRR Growth Rate

Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage. MRR Growth Rate is often cited as a monthly rate, but it's also possible to express it using an annual timeframe; for example, "we are targeting 10% MRR Growth for April", or "our MRR Growth Rate was 100% last year".

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Natural Rate of Growth

Natural Rate of Growth measures the speed at which your company grows, purely based on organic sources of growth. This includes organic signups and incremental recurring revenue started in product without sales involvement.

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Net Burn

Net Burn, often referred to as Burn Rate, is the amount a company is losing per month as they burn through their cash reserves. It occurs when a company’s operating costs are higher than their revenue. A company that is profitable and generating cash has a "negative Net Burn".

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Net MRR Churn Rate

Net Monthly Recurring Revenue (MRR) Churn Rate is the percentage change in MRR due to expansions, cancellations and downgrades. A negative Net MRR Churn Rate occurs when expansions exceed downgrades and cancellations and is a strong positive indicator of company health. This metric is typically expressed as a monthly rate although it can also be an annual rate: Net Annual Recurring Revenue (ARR) Churn Rate.

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Net Promoter Score

Net Promoter Score (NPS®) is a measure of a customer base's willingness to promote a product or service to colleagues and friends. It is based on the results of a current customer survey, which asks respondents to answer the following question: “how likely is it that you would recommend (brand or product X) to a friend or colleague?” Responses, with 10 being the highest, are grouped as follows: 10s and 9s are brand ‘Promoters’, 8s and 7s are ‘Neutrals’, and any responses below 7 are brand ‘Detractors’.

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Net Revenue Retention Rate

Net Revenue Retention (NRR) Rate, also known as Net Dollar Retention (NDR), is the percentage of recurring revenue retained from existing customers in a defined time period, including expansion revenue, downgrades, and cancels. This churn metric gives a comprehensive view of positive as well as negative changes with respect to customer retention. A good NDR can range between 90% to 125%, based on target customer size.

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Pages Per Session

Pages per Session, sometimes referred to as Page Views per Session, is the count of a website’s total page views divided by the total number of sessions that have taken place. It indicates the average number of pages on your website that users access per session. Having a high average Pages per Session means that the average visitor to your website is interested in exploring your website beyond the initial page they land on.

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Revenue

Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.

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