Annual Recurring Revenue (ARR)

Track predictable yearly revenue from subscriptions to measure business scale and growth trajectory in B2B SaaS and recurring revenue models.

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR)

definition

Introduction

Why it matters

How to apply it

Keep learning

Growth orchestration

Get a grip on what's actually working and what needs course correction. Use data and experiments to make decisions instead of opinions. See how changes in one part of the system affect everything else. Random tactics don't compound, coordinated ones do.

Explore playbooks

Tool selection

Tool selection

Select tools across your growth stack using clear evaluation criteria. Avoid common pitfalls, ensure integrations work, and build a system that scales with your business.

Customer research

Customer research

Uncover specific pain points, validate assumptions, and reveal what actually drives buying decisions. Run research that produces actionable insights, not just interesting quotes.

Quarterly strategy

Quarterly strategy

Run quarterly business reviews that assess current state, set ambitious but realistic goals, build actionable roadmaps, and define key results that keep everyone aligned.

Monthly review

Monthly review

Analyse monthly performance data across all four growth engines. Identify what is working, what is not, and make tactical adjustments using a structured decision framework.

Related books

No items found.

Related chapters

1

How to choose the right metrics

Focus on metrics that drive decisions and reveal bottlenecks. Avoid vanity metrics that look good but don't help you grow.

5

How to run quarterly business reviews

Deep strategic reset with full performance analysis. Identify system-level bottlenecks, validate strategy, and set the next roadmap.

Wiki

Annual Recurring Revenue (ARR)

Track predictable yearly revenue from subscriptions to measure business scale and growth trajectory in B2B SaaS and recurring revenue models.

Workflow automation

Connect triggers to actions across systems so repetitive tasks happen automatically and teams can focus on work that requires judgement instead of admin.

Churn rate

Measure the percentage of customers who stop paying to identify retention problems and calculate the true cost of growth in subscription businesses.

Lead velocity rate

Measure the month-over-month growth in qualified leads to predict future revenue and catch pipeline problems before they impact revenue three months later.

Sales qualified lead velocity

Track how fast your pipeline of ready-to-buy leads grows to forecast sales capacity needs and spot when lead quality or sales efficiency changes.

Multi-touch attribution

Distribute conversion credit across multiple touchpoints to recognise that customer journeys involve many interactions and channels working together.

Positioning statement

Define how you're different from alternatives in a way that matters to customers to guide all messaging and ensure consistent market perception.

Pareto Principle

Focus effort on the 20% of activities that drive 80% of results, systematically eliminating low-yield work to maximise output per hour invested.

Hypothesis testing

Structure experiments around clear predictions to focus efforts on learning rather than random changes and make results easier to interpret afterward.

Go-to-market strategy

Plan how you'll reach customers and generate revenue by choosing channels, pricing, and sales models that match your product and market reality.

Event tracking

Capture specific user actions in your product or website to understand behaviour patterns and measure whether changes improve outcomes or create friction.

UTMs

Track campaign performance precisely by appending parameters to URLs that identify traffic sources, mediums, and campaigns in your analytics.

Statistical significance

Determine whether experiment results reflect real differences or random chance to avoid making expensive decisions based on noise instead of signal.

Sales tech stack

Assemble tools that manage pipeline, automate outreach, and track performance to help reps sell more efficiently and managers forecast accurately.

Product-market fit

Achieve the state where your product solves a genuine, urgent problem for a defined market that's willing to pay and actively pulling your solution in.

Compound growth rate

Calculate your true growth trajectory by measuring the rate at which your business grows when gains build on previous gains over multiple periods.

Contact management

Organise customer and prospect information to track relationships, communication history, and next steps without losing context or duplicating effort.

Inbound Marketing

Attract prospects through valuable content that solves real problems, building trust and generating qualified leads who approach you.

A/B testing

Compare two versions of a page, email, or feature to determine which performs better using statistical methods that isolate the impact of specific changes.

Value proposition

Articulate the specific outcome customers get from your solution to communicate why they should choose you over doing nothing or using alternatives.