Demystify B2B SaaS Terminology So You Know the Answers When You Get Asked

MRR stands for 'Monthly Recurring Revenue'. It is the average monthly revenue your business generates from subscriptions. It tells you how much money in total your customers pay each month to use your SaaS product.

Net Revenue Retention (NRR) is a percentage that compares the amount of recurring subscription revenue you retain from your existing base of customers to the amount of new revenue you generate from them.

Customer acquisition cost (CAC) is the cost a business spends on average to acquire one new customer. 

ARPU has a significant influence on how you plan your go-to-market strategy. If you have a high ARPU with high net revenue retention (NRR), you can do some very interesting and exciting things to acquire new customers because it’s so profitable to do so.

Annual Recurring Revenue (ARR) is a way for measuring subscription revenue for Software-as-a-Service (SaaS) businesses using yearly or multi-year contract agreements.

Percentage of a company's existing customers that continue to do business with that company over a specified period of time.

Customer Lifetime Value, often abbreviated as LTV, is a critical metric in business that quantifies the total revenue a company can expect to generate from a single customer throughout their entire relationship with the business.

The LTV:CAC Ratio is a critical financial metric used by businesses to evaluate the effectiveness of their customer acquisition and retention strategies.

Churn Rate is a key metric in business, particularly in subscription-based services or customer-centric industries.

A Sales Kickoff, often abbreviated as SKO, is a significant event or meeting held by a company, typically at the beginning of a fiscal year or sales cycle.