Key Stripe Metrics Explained: Understanding Your Business Performance
Learn how to track and interpret essential Stripe metrics to make data-driven decisions for your business.
Core Metrics Categories:
- Revenue Metrics
- Customer Metrics
- Transaction Metrics
- Growth Indicators
Revenue Metrics
Monthly Recurring Revenue (MRR)
The predictable revenue component from all active subscriptions normalized to a monthly value.
How to calculate:
MRR = Sum of all monthly subscription values
Note: Annual subscriptions should be divided by 12
Query example: "What is my current MRR?"
Annual Recurring Revenue (ARR)
The yearly view of your recurring revenue, typically used by enterprise SaaS companies.
How to calculate:
ARR = MRR × 12
Query example: "Show me ARR growth trend this year"
Customer Metrics
Customer Lifetime Value (CLV)
The total revenue you can expect from a customer throughout their relationship with your business.
How to calculate:
CLV = Average Monthly Revenue per Customer × Average Customer Lifespan (months)
Query example: "What is the average CLV by customer segment?"
Churn Rate
The percentage of customers who stop using your service over a given period.
How to calculate:
Monthly Churn Rate = (Customers Lost in Month ÷ Total Customers at Start of Month) × 100
Query example: "Show monthly churn rate for the past 6 months"
Transaction Metrics
Average Transaction Value (ATV)
The average amount spent per transaction.
How to calculate:
ATV = Total Revenue ÷ Number of Transactions
Query example: "What is my average transaction value by product?"
Payment Success Rate
The percentage of successful payments versus total payment attempts.
How to calculate:
Success Rate = (Successful Payments ÷ Total Payment Attempts) × 100
Query example: "Show payment success rate by card type"
Growth Indicators
Net Revenue Retention (NRR)
Measures revenue growth from existing customers, including expansions, contractions, and churn.
How to calculate:
NRR = (Starting MRR + Expansions - Contractions - Churn) ÷ Starting MRR × 100
Query example: "Calculate net revenue retention rate for Q1"
Quick Ratio
Measures the efficiency of your growth by comparing revenue expansion to revenue contraction.
How to calculate:
Quick Ratio = (New MRR + Expansion MRR) ÷ (Churned MRR + Contraction MRR)
Query example: "What is my current quick ratio?"
Pro Tips for Metric Analysis
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Track Trends, Not Just Numbers
Monitor how metrics change over time rather than focusing on single data points
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Use Comparative Analysis
Compare metrics across different time periods and customer segments
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Set Up Automated Monitoring
Create alerts for significant changes in key metrics
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Contextualize Your Data
Consider external factors and market conditions when analyzing trends
Common Analysis Pitfalls to Avoid
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Ignoring Seasonality
Remember to account for seasonal variations in your metrics
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Over-relying on Averages
Look at distributions and segments, not just average values