Lauren ThibodeauFounder, CEO, Consultant
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Gross Revenue Retention Rate
Gross Revenue Retention (GRR) Rate is the percentage of recurring revenue retained from existing customers in a defined time period, including downgrades, and cancels. It does not include any expansion revenue. GRR is also commonly referred to as Gross Renewal Rate.
Annual Contract Value
Annual Contract Value (ACV) is the dollar amount an average customer contract is worth to your company in one year. There tends to be less universal consensus on the definition of ACV compared to some other SaaS metrics, such as Annual Recurring Revenue. For example, some companies include one-time initial charges like setup or training in their ACV calculations, while others don’t.
Total Addressable Market
Total Addressable Market (TAM) is a measure of the revenue opportunity of capturing 100% of the market for a product or service.
Time to Value
Time to Value (TTV) measures the duration between when a user selects your product and the moment they initially realize the value of your product. Value usually means that the setup process is completed and the first usage of the product is successful.
Customer Health Score
A Customer Health Score is a single, calculated number that reflects a customer’s health across multiple dimensions. By monitoring Customer Health Scores, you can detect early signals of increased friction or declining customer engagement. You can also identify highly engaged and loyal clients, who would make excellent advocates.
Customer Effort Score
Customer Effort Score (CES) is a measure of how easy or difficult it is for customers to interact with your company, for example, to make a purchase, to access a free trial, to resolve a problem, to navigate your website, or to get something done in your product. It’s measured by surveying customers after a specific interaction, and asking them to rate how easy or difficult it was to do what they wanted to do. Examples of difficult or high-effort interactions are ones that add friction for customers, for example, making them repeat information, interact with multiple people or screens, or wade through generic content to find information relevant to them.