Revenue metrics track how effectively your product monetizes user engagement. These metrics measure the financial outcomes of your product strategy and growth efforts.

Customer lifetime value (LTV) stands as the most important revenue metric, representing the total revenue a customer generates before churning. Calculated as average revenue per user (ARPU) divided by churn rate, LTV helps businesses determine sustainable acquisition costs and forecast long-term financial health. Other key revenue metrics include conversion rates to paid plans and revenue churn (percentage of revenue lost from cancellations, downgrades, or customer departures). For subscription businesses, additional metrics like monthly recurring revenue (MRR), annual recurring revenue (ARR), and expansion revenue help track growth and stability of revenue streams.

Keep in mind that different business models require different revenue metrics. For example, eCommerce focuses on average order value and purchase frequency, while B2B SaaS companies track annual contract value (ACV), upsell conversion rates, and enterprise account expansion. Regardless of model, revenue metrics should connect back to earlier funnel stages to understand which acquisition channels and user segments generate the most financial value.