Subscription Metrics: MRR, Churn and LTV
Subscription businesses live and die by a handful of metrics. If you can read MRR, churn and lifetime value, you can see the health of your business at a glance.
This article defines the essentials in plain language.
The Three That Matter Most
- MRR: monthly recurring revenue, your predictable income each month.
- Churn: the share of customers or revenue you lose each month.
- LTV: lifetime value, the total a customer is worth before they leave.
How They Connect
Lower churn means customers stay longer, which raises lifetime value and lets you spend more to acquire each one. Small improvements in churn compound dramatically over time.
| Metric | What it tells you | Goal |
|---|---|---|
| MRR | Predictable monthly income | Grow steadily |
| Churn | Rate of customer loss | Keep low |
| LTV | Long-term value per customer | Maximise |
If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.