Benchmarking

Benchmarking

Use the benchmarking page to evaluate your company’s performance against similar companies that use Stripe for their subscription business.

Filters

You can use the following three filters to customise the benchmarks:

• Annual Recurring Revenue (ARR) buckets
• Average Revenue Per User (ARPU) buckets
• Business model (B2B, B2C, or both)

These filters allow you to compare your company’s performance against businesses with similar customer bases, growth stages, and subscriber values. The filters are initially preset based on your business profile. You can adjust these filters to look at different market segments and identify benchmarks that you want to achieve.

Chart descriptions

The Dashboard presents four key metrics as 12-month trends:

• MRR Growth Rate: This shows your revenue expansion pace, with higher positive values indicating faster growth.
• Subscriber Lifetime Value (LTV): This represents the total expected revenue from a customer, with higher values suggesting more valuable relationships.
• Net MRR Churn Rate: This measures revenue retention, with lower or negative values being better.
• Subscriber Churn Rate: This indicates customer retention, where lower values are preferable.

The chart shows your business metrics compared to the top, median, and bottom trends of at least 500 similar businesses based on your filter selection. Hover over the chart to see detailed comparisons at specific intervals in the timeline.

Chart pattern analysis

To help you understand and analyse the information in the charts, consider the following:

• High MRR growth along with high net MRR churn suggests rapid customer acquisition but retention problems.
• Low subscriber churn with high net MRR churn might indicate customer downgrades.
• Rising LTV with decreasing churn rates suggests that your customer satisfaction is improving and your retention strategies might be working.
• High MRR growth with stagnant LTV might indicate acquiring too many lower-value customers.

To get the most out of the Dashboard, start by reviewing your preset filters to understand your position relative to your peers. You can experiment with different filter combinations, depending on what you hope to learn. Look for consistent patterns across months to distinguish trends from anomalies. Use this information to make strategic decisions about customer acquisition, retention, and expansion.