Monthly recurring revenue is a measure of your business’ predictable monthly revenue resulting from all your active subscriptions. It is calculated by multiplying the number of paying customers by the monthly subscription fee. MRR provides businesses with a more accurate and predictable way to forecast revenue and growth, as it takes into account the recurring nature of subscription-based businesses. By increasing MRR, businesses can improve their cash flow, reduce customer acquisition costs, and increase customer lifetime value. MRR is commonly used in Software-as-a-Service (SaaS) businesses, as well as in other subscription-based industries such as media, telecommunications, and eCommerce.
Minimum viable product is an earlier version of a product that helps that attracts early adopters and gather feedback for future development. The goal of an MVP is to test and validate a business idea or hypothesis with the least amount of effort and investment, while still delivering value to early adopters. By releasing an MVP, businesses can gather valuable feedback from users, validate assumptions, and identify areas for improvement, before investing significant time and resources into developing a fully-featured product. The MVP approach is commonly used in startups and innovation projects, where there is a high degree of uncertainty and risk involved, and where speed to market and agility are critical for success.
Margin is the difference between the price a retailer pays for a product and that a customer pays for the same product. Margin is expressed as a percentage, and is used as a measure of profitability for a business. In order to maximise margin, businesses need to optimise their pricing strategy and control their costs, in order to ensure that the revenue generated from sales is greater than the cost of producing or providing the product or service. Margin can be influenced by a number of factors, including competition, supply and demand, production efficiency, and pricing strategy. By maintaining healthy margins, businesses can generate sustainable profits and reinvest in growth and innovation.