Sales Metrics
Incorporating sales metrics into your SaaS reporting is cio and cto email lists to help your sales team understand how they contribute to the development of your business. Additionally, this metric is critical to helping you better understand your customers.
When analyzing this aspect, it is necessary to understand that the other elements included in it must be addressed in the best possible way. These are:
When you look at the surface of these two metrics, you might think they are used to address the same thing. This is not the case! Remember that the number of customers you lose becomes the amount of revenue you lose at the end of the day.
Furthermore, the customer churn rate primarily translates to the number of customers who chose to downgrade their subscription package involuntarily, mainly due to late or failed payment.
To calculate this metric, you need to determine the total number of subscribers you had at the beginning, especially within a month.
Once you have this number, you can subtract the number of subscribers at the end of the stipulated period. Go ahead and decide the number you will get in step two based on the number of subscribers you had at the beginning of the period.
Additionally, you should include average revenue per customer (ARPC) in your sales reports. This metric detects the total amount of money a business can expect from a single customer depending on how regularly they purchase products from your company.
It also plays a huge role in helping the business understand more about the spending habits of customers and how to improve sales efficiency, especially when combined and integrated with software and tools like ERP/Manufacturing software, Finance, Retail, Inventory Management, and HR.
Ways to Effectively Analyze Churn Data
In this part of the blog, we have provided you with several ways to analyze customer churn data. Let’s look at them from a deeper perspective.
a. Customer retention rate
This is one of the effective ways to analyze churn data. It provides data and percentages of the number of customers who remain with the business.