Customer revenue
Definition
Customer revenue is the total amount of money that a customer's subscription generates for a business.
Customer revenue is broken up into two main categories: monthly recurring revenue (MRR) and annual recurring revenue (ARR). MRR refers to all the revenue that a business makes from its current customers each month, while ARR refers to all the revenue that they will make over the next 12 months from current customers.
Example:
If a customer signs up for a $10 monthly subscription and pays via credit card, the customer revenue is $120 per year.
How do you increase customer revenue?
Increase the cost of the product/service. If you charge more for your offering then you will increase the amount of revenue each customer generates.
Acquire new customers. If you acquire new customers then you will increase the total amount of revenue that you generate.
Decrease cancellations. If you run a subscription business model and you can decrease your churn rate then you will increase the number of customers that you have paying for your services thus increasing your customer revenue.
