Leila Hormozi shared a post on Instagram: "There are two main types of KPIs. 1. Lagging Indicators These measure past performance, revenue, and customer activity. 2. Leading Indicators By analyzing both, you better understand your biz, and how to scale it: — 1. Annual Contract Value (ACV) How much each contract is worth per year. Total monthly contract x 12 = ACV Ex: $1,500 x 12 = $18,000 ACV — 2. Annual Recurring Revenue (ARR) Identifies how much recurring $ your biz makes per year. (Overall subscription cost per year + Recurring revenue from add-ons or upgrades) - Revenue lost from cancellations = ARR — Ex: ($1M/yr Subscriptions + $200k Recurring upsells) - $300k Lost to churn = $900k ARR — 3. Average Revenue Per User (ARPU) Quantifies the $ value of each customer. Total revenue / Average # of users = ARPU Ex: $1M/yr Revenue / 1,000 Users = $1,000 ARPU — 4. Customer Acquisition Cost (CAC) Identifies the total cost to get a new customer. (Cost of sales + Cost of marketing) / New customers acquired = CAC Ex: ($500k Sales commissions + $500k Ad spend) / 10,000 Customers = $100 CAC — 5. Customer Effort Score (CES) Measures how difficult it is— And how long it takes for a customer to perform a certain action with your biz. To determine this, ask your customers to answer these questions on a scale of 1-10: — “How much effort did you personally have to put forth to handle your request?” “The organization made it easy for me to handle my issue”‍ — 6. Customer Retention Cost (CRC) Quantifies your total cost to keep your customers happy & paying you. (Total cost of customer success + retention activities ) / number of active customers = CRC — Ex: ($750k customer satisfaction costs + $250k retention costs) / 5,000 customers = $200 CRC — 7. Customer Retention Rate (CRR) Measures how many customers you kept over a period of time. 1 - (Customer lost in the period/ Customer at start of the period) = CRR Ex: 1 - (1,000 Customers lost / 5,000 Customers at start) = 80% CRR — #8-16 are in the comments!". Follow their account to see 876 posts.