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.

Gross Retention Rate (GRR) remains vital in the realm of SaaS metrics. Not only does it offers a clear insight into customer value and satisfaction, alongside Net Revenue Retention (NRR), but it serves as a crucial pillar for achieving long-term, sustainable growth. Track this metric religiously, integrate it as a KPI, and allocate resources wisely to enhance your gross retention trajectory over time.

Kyle Poyar at OpenView has proposed a new set of SaaS metrics to better measure Product Led Growth and diverse revenue streams. What are these new metrics? What do they mean for pricing design? Is Value to Customer (V2C) the missing metric?

Net Dollar Retention (NDR) or Net Revenue Retention (NRR) is a key metric that investors are using to measure the health of their portfolio companies. Pricing and packaging has a big impact on this metric, but not always in the ways one expects. How can pricing help improve NDR?