Historically, SaaS companies have used ARR or Annual Recurring Revenue as their key metric. As pricing models diversify and access, usage and outcomes are combined with subscriptions to build hybrid pricing models ARR becomes less relevant. At the same time, more volatility in churn numbers is undermining the utility of ARR as a predictor of future revenue. We need a new metric. Ibbaka proposes that this be APR for Annual Predicted Revenue.

Are you planning a price increase for 2023? Before you execute on a price increase you need to segment your customers. The segmentation is based on Value to Customer (V2C) and a measure of the value of the customer to the company like ARR or LTV (life time value of the customer). You want to move customers into the segment where they are getting a lot of value and providing a lot of value.