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.
If a customer signs up for a $10 monthly subscription and pays via credit card, the customer revenue is $120 per year.
Frequently asked questions
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- 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.
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