Metrics & KPIs

MRR

Monthly Recurring Revenue — revenue from subscription customers, normalized to a monthly figure. Predictable cash flow is the #1 leverage source in ecommerce.

MRR is the revenue your store generates each month from subscription customers, independent of one-time purchases. It's the ecommerce version of the SaaS metric, and it's powerful for the same reason: it's predictable and compounding.

A store doing $100K/month with 20% of that as MRR ($20K/month in subscriptions) has a fundamentally different business than a store doing $100K/month in pure one-off orders. The subscription store opens each month with $20K of baseline revenue before a single ad dollar is spent.

MRR is built in three ways: (1) converting one-time buyers into subscribers with a "Subscribe & Save" offer on the PDP; (2) designing a product whose natural re-order cycle fits a 30-day cadence (consumables, supplements); (3) subscription-only product launches to existing email lists.

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Related terms in Metrics & KPIs
AOV
Average Order Value — the average dollar amount a customer spends per transaction. Total revenue divided by number of orders.
AOV Lift
The increase in Average Order Value produced by a specific tactic — bundles, upsells, order bumps, quantity discounts. Every dollar of AOV lift compounds against ad spend.
ATC
Add to Cart — the tracked event when a visitor adds an item to their cart. ATC-to-purchase ratio is a powerful diagnostic of checkout friction.
Attach Rate
The percentage of orders that include a secondary item — typically an upsell, bundle, or order bump. Every 10% of attach rate is ~4-6% of AOV lift.
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