Technology
Purpose of Revenue Retention and How to Increase Your Revenue Retention Rate
What is Net Revenue Retention Rate?
Net Revenue Retention (NRR) Rate also referred to in the form of Net Dollar Retention (NDR) is the amount of recurring revenue that is retained by customers who have been with us for a specific time frame, which includes growth revenue, downgrades, and cancellations.
This churn measure provides an extensive overview of both positive and negative shifts in relation to the retention of customers. A great NDR could be anywhere from 90% and 125%, depending on the size of the customer you want to retain.
Net Revenue Retention Vs. Gross Revenue Retention
Since we’re talking about the subject of revenue retention, let’s take a brief look at gross revenue retention (GRR). The calculation of gross revenue is crucial to understand since it does not take into account price increases and growth within the customer database.
Since it doesn’t take into account upsells, the gross retention calculation is a more reliable metric and provides a better measure of whether your business is keeping its revenue from existing customers over the course of its life.
What Is the Purpose of Net Revenue Retention?
NRR is an important measure for subscription businesses and SaaS executives who want to determine how sustainable their company’s revenue growth. The current volatility period has seen a shift of “growth at all costs” to an emphasis on sustainable growth, specifically for investors.
The sustainable growth of SaaS depends on keeping your current customers as well as increasing the number of accounts they have with your company. In this regard report, the reporting of your monthly recurring revenues (MRR) does not quite do it.
A high level of churn and account shrinkage could be a sign of issues with your product’s value proposition price strategy, pricing strategy and the customer’s experience, and so on. If your measure of achievement can be measured by MRR expansion, those issues are often covered with high acquisition rates.
A high rate of net revenue retention indicates steady and sustainable growth. And the higher rate, the greater your chances of establishing a good reputation with investors.
How to Increase Your Revenue Retention Rate?
Because revenue retention is directly in contrast to churn, we can apply the same strategies we use to decrease the amount of churn in order to boost our rate of revenue retention.
This begins and ends by making sure your customers are happy and satisfied, which includes (but not only) providing improvements and a successful team, and identifying innovative ways to retain the customer who is close to churning.
Let’s explore all of them more deeply.
- Offer Upgrades
In the revenue retention calculation upgrade options are important. Offering your customers, the option to buy new products or features, as well as upgrading to a higher-cost subscription level or adding on complementary tools can be a significant factor in the retention of revenue.
Any chance you have to expand your MRR could lead to an increase in your rate of revenue retention.
- Invest in Customer Success
Did you realize that U.S businesses are losing more than $62 billion each year because of poor customer service?
This is a significant amount of money that could be used to invest in a new company. Although you might want to concentrate on the development of your product in the initial phases of your business You should also have a customer support team in place to keep the initial customers satisfied.
- Offer Alternatives to Churned Customers
Breakups can be difficult. But not all customers who are churned must be lost cause!
There are many possibilities to provide alternatives to customers who are looking to end their relationship. This could include providing a downgrade to a lower price or offering a temporary discount to retain customers.
Sure, downgrading can impact your retention rate However, a drop in the number of revenues per client is much simpler to accept rather than losing the customer completely.
How to Optimize NRR and GRR?
It is important to remember the distinction between gross and net retention. aren’t the same thing as customer retention. While customer retention is a measure of the number of customers that are retained while the two NRR and GRR rather focus on the amount of revenue that is retained. So, the amount of customers is not as important.
As stated, optimizing the GRR and NRR is crucial for investors. In order to give your business, the best chance to secure funds, the rates of revenue retention must be analyzed and enhanced. Since churn rates have an impact directly on the two KPIs, the reasons behind it must be fully understood for improvement.
For SaaS companies, typical reasons for churn are insufficient customer service support, as well as technical problems. Although you won’t be able to do much against your competition you can concentrate on improving your features in order to stop revenue losses because of the phenomenon of churn.
Maintaining your customer base can additionally have enhanced when you take the correct actions at every step along the customer’s journey.
For example, forcing new customers to upgrade immediately can hurt the rate of growth and could result in the customer being unable to upgrade. After 6 months of onboarding (including numerous emails and marketing materials) the customer is more prepared for an upsell.
While most SaaS companies would rather skip over analysis These KPIs are the most important factor for investors. In order to better prepare your business for the possibility of putting funds back into your business to enhance services go through some of our most successful SaaS case studies of start-ups for R&D funding.
Final Takeaway: Increase the Net Retention of Revenue
It’s a known fact that a satisfied customer will spend more money on your business than a brand new one. If you’re selling your software for $50/month, then your objective as a SaaS specialist should be to determine to increase this number to $100 per month.
You must find ways to grow your business by partnering with your existing customers. This is the biggest change to the business model SaaS has provided.
In the case of expansion of a business by acquiring existing customers, maintaining the revenue that is recurring and preventing revenue churn is obviously the most crucial objective. However, that’s not the end of the story.45
In addition to cross-sells and upsells and cross-sells, you should also review your SaaS pricing frequently. However, this must be backed by a rationale. Inflation is undoubtedly the most obvious, but there is nothing more persuasive to customers than regular updates and enhancements.
LLDP and LLDP-MED are two networking protocols designed to enable better network management, device discovery, and communications. They are both Layer 2 protocols that use Ethernet frames for data transmission, but offer different benefits to businesses. In this article, we will unpack exactly what LLDP and LLDP-MED are, how they work together, and how they can help improve the network infrastructure of any business. By the end of this article, you should have a solid understanding of these two technologies and how they can benefit your organization.
What is LLDP?
LLDP is a standard protocol for network devices to exchange information with each other. The protocol is used to discover the physical topology of the network and to identify which device is connected to which port. LLDP also allows devices to share their capabilities and configurations with each other, which helps ensure that the network is configured correctly.
LLDP-MED is an extension of the LLDP protocol that was developed specifically for VoIP networks. It allows VoIP devices to exchange information about their quality of service (QoS) requirements and capabilities. This information can be used by network devices to automatically configure themselves for optimal QoS performance.
What is LLDP-MED?
LLDP-MED is an extension to the industry standard Link Layer Discovery Protocol (LLDP), and allows networked devices to exchange information about their capabilities and configuration. The LLDP-MED specification was developed by the IEEE 802.1 working group, and defines a set of TLVs (Type-Length-Values) that can be used to exchanged information such as device type, media type, power over Ethernet (PoE) support, VLAN configuration, and more.
In order for two devices to exchange LLDP-MED information, they must first be configured to do so. This can be done manually, or via DHCP/automated configuration mechanisms. Once configured, the devices will periodically send out LLDP-MED frames containing the relevant TLVs. These frames are received and processed by neighboring devices, which can then use the information to optimize their own configuration. For example, a switch may use LLDP-MED information from an IP phone to configure itself for PoE support and enable QoS features for that particular phone.
The LLDP-MED specification is flexible and extensible, and new TLVs can be defined as needed. This allows manufacturers to add support for new features and capabilities without having to wait for a standard update. However, it also means that not all devices will necessarily support all TLVs – so it’s important to check compatibility before relying on LLDP-MED for critical network tasks.
How do LLDP and LLDP-MED work together?
LLDP and LLDP-MED are two industry standard protocols that work together to provide enhanced management and control of IP-based networks. LLDP is used to discover and report information about neighbors on a network, while LLDP-MED is used to manage QoS parameters and automatically configure devices for optimal operation.
When used together, these protocols can provide a wealth of information about the state of a network and the devices connected to it. This information can be used by network administrators to troubleshoot problems, optimize performance, and ensure compliance with policies and procedures.
In addition, the use of LLDP and LLDP-MED can automate many of the tasks associated with managing a network. For example, when a new device is connected to the network, LLDP can be used to discovery its capabilities and automatic configuration settings. This information can then be passed on to LLDP-MED, which can use it to configure the device for optimal operation without any manual intervention.
The combination of these two protocols provides a powerful tool for managing IP-based networks. By using them together, administrators can gain detailed insights into the state of their network and automate many of the tasks associated with managing it.
Benefits of using LLDP and LLDP-MED together
LLDP and LLDP-MED are two complementary technologies that can be used together to provide a number of benefits for network administrators. When used together, these technologies can provide enhanced visibility into the network, simplification of network configuration and management, and improved security posture.
Some of the key benefits of using LLDP and LLDP-MED together include:
1. Enhanced visibility into the network: LLDP provides detailed information about the devices and connections in a network, while LLDP-MED adds additional data such as device capabilities and configurations. This combination of data gives network administrators a comprehensive view of their network, making it easier to identify potential problems or areas for improvement.
2. Simplified network configuration and management: The use of LLDP can automate many tasks related to configuring and managing networking equipment. For example, LLDP can be used to automatically discover devices on a network and configure them with the appropriate settings. This can greatly simplify the process of configuring and managing large networks.
3. Improved security posture: The use of LLDP can help improve the security posture of a network by providing detailed information about devices and connections. This information can be used to identify potential security risks and take steps to mitigate them. Additionally, LLDP-MED can help secure communication between devices by encrypting data transmissions.
Implementing LLDP and LLDP-MED
LLDP and LLDP-MED are two networking protocols that can be used together to provide end-to-end connectivity between devices on a network. LLDP is a Layer 2 protocol that allows devices to discover and exchange information about their neighbors on the network. LLDP-MED is a Layer 3 protocol that extends the functionality of LLDP to include support for media-specific applications such as VoIP and IPTV.
When implemented together, these two protocols can provide a complete solution for end-to-end connectivity between devices on a network. In addition to discovery and information exchange, LLDP and LLDP-MED can also be used to configure and manage networked devices. For example, LLDP can be used to automatically configure port settings on switches and routers, while LLDP-MED can be used to manage QoS settings for VoIP traffic.
When configuring LLDP and LLDP-MED, it is important to ensure that both protocols are enabled on all devices on the network. In addition, it is necessary to configure each protocol’s settings according to the needs of the specific application or service being deployed. For example, when deploying VoIP over an IP network, it is necessary to configure QoS settings in order to ensure acceptable call quality.
Conclusion
LLDP and LLDP-MED are important protocols in today’s networks, allowing for improved interoperability between different devices. They work together to identify and exchange information about each device on the network. The combination of LLDP and LLDP-MED allows for more robust network deployments, including providing better quality service to users. By understanding how these protocols work together, you can ensure that your network runs as smoothly as possible.
When it comes to cryptocurrency exchange development, there are multiple eyes to get your dream trading platform. Depending upon the budget, time duration of the project and features entitled to the platform, businesses choose their way to complete their dream project. One way to create a crypto trading platform is by using a white-label bitcoin exchange script to build a platform like Binance, one of the world’s top-rated platforms.
Binance is an online exchange where users can buy, sell or trade cryptocurrencies with the reliability and security of an optimum trading place. It has gained popularity because of its features and interface that attracts users to the platform in the first place. White-label solutions are that miraculous thing that can assist businesses in starting their cryptocurrency exchange business as a top-rated platform in no time. Let us learn more about white-label exchanges now.
What Do You Mean By White-Label Exchange?
A white-label solution is a pre-designed, coded and tested script made by a third party to sell to businesses to help them build a crypto trading platform with their name and logo.
In other words, a white-label script is like using another brand’s script to develop their product with our name. A white-label works like a deal that connect a white-label script provider to the one who wants to buy one for their business.
Seeing the current burgeoning trend in cryptocurrency and its trading, many renowned companies offer their white-label solutions to help businesses get into the cryptocurrency market. From Binance, Luno, Wazirx, Coinbase and Remitan, many famous trading platforms offer their white-label solutions in the market.
These white-label help build cryptocurrency exchange in which you get all the features, design, and functionality of the platform whose script you are using.
Types of Exchanges Available in The Market
When we talk about white-label exchanges, there are three types available in the market that you can opt for as per your business needs.
1. Centralized Exchanges
A centralized trading platform is that cryptocurrency trading online space where traders can buy or sell crypto but under the control of the Bitcoin exchange software. It means that Binance will control or supervise all the transactions on the platform.
2. Decentralized Exchanges
The exact opposite of centralized ones, a decentralized platform works on an automated system that controls the transaction process between two users. It means that there is no presence of authority, and it works on a peer-to-peer trading concept. Binance DEX also makes decentralized exchanges available in the market.
3. Hybrid Exchanges
A hybrid exchange is the amalgamation of both centralized and decentralized exchanges altogether. It means that both exchanges’ top qualities are integrated into one single platform. From features like low latency and the fastest transaction speed from centralized ones to no third-party intervention, users can bring the best of the trading experience.
How To Start a Crypto Exchange Business?
If you want to enter into the cryptocurrency business, there are two ways to get your dream project done, and that is:
- Creating a crypto trade platform from scratch, and
- Building one using a white-label Bitcoin Exchange
While building a trading platform from scratch is more hectic, challenging and time-consuming and would rather take up all your money and energy, a white-label solution will do the same work in less time and lower cost.
It takes around 12 to 24 months to create a platform from scratch, from creating a plan to designing the interface and development process to testing and deployment. And there might be a chance that you might not get the product you wanted in the first place.
On the other hand, a white-label solution can do the same work for you with no unseen challenges and complexities. You can build the platform in less time, and the final product is also cost-effective. As it is a pre-designed and coded script that the developer uses to build the exchange, it generally takes 6-12 months to finish the project. This means that you get savings on money, time and energy that you can invest in more crucial tasks for your business’s growth.
What Are The Advantages of Using a White-Label Solution?
Despite the above-mentioned benefits, there are some additional features that white-label solutions provide to businesses:
1. Customization Option
You can add or eliminate any feature or change th interface per your requirement using the customization feature.
2. Reliability
Since the white-label solution has already been in the market for a long, it has set some brand recognition and consists of capabilities that will help you set your foot in the market.
3. Ideal Use of Resouces
With this mode of development, businesses can save both time and money as they get a pre-designed, approved, tested and trusted solution that has proven to be admired by the customers. So, you do not need to do most of the part alone.
4. Faster Development
Any company can build their cryptocurrency trading platform in a very less period and with minimal effort using a white-label solution.
Take Away From The Blog
People are now choosing cryptocurrency exchange platforms for their businesses as it is a perfect way to increase their market share and maintain liquidity flow in their company. But, as they have no knowledge of the cryptocurrency market, building one can be a tricky task with all the effort, time, and money.
The best way to enter this new field is to opt for white-label solutions from Appinop Technologies and their development services to build a fully functioning and cost-effective crypto trading platform. With an experienced team, the latest tools and the newest technologies, you can rely on Appinop for your next dream project. With their meticulously designed plans, you can design your project plan to ensure that your plan is in the right hands.
Get a consultation with the most-accomplished industry names to resolve all your queries and confusion related to the cryptocurrency market to start your business confidently.
Technology
Artificial Intelligence in eCommerce App Development: Powerful Ways to Integrate the Technology
Artificial intelligence (AI) is a recent innovation widely used by organizations of all sizes and in various sectors. The ever-demanding AI applications are paying off for organizations. To speed up digitization and benefit from technological advancements, businesses are increasingly implementing AI use cases in many facets of their operations.
Online market vendors and retailers are progressively investing in AI apps, just as in the manufacturing, healthcare, and other product or service sectors. Retailers or eCommerce players focus on providing more individualized services to their customers through AI-powered mobile app development combined with Augmented Reality and Virtual Reality capabilities.
By collaborating with the top eCommerce app development company, app developers and research analysts can create the best applications of AI in eCommerce. Moreover, in this article, you’ll learn how AI mobile applications work to grow an eCommerce business.
But how are they doing this? Read on for our comprehensive list!
Increase in volume of voice search
Nowadays, people rely on voice assistants like Alexa and Siri to get all details about products before making an online purchase. According to an updated speaker sales forecast model published by Loup Ventures1, 75% of US citizens will have a smart speaker by 2025, producing $35.5 billion in revenue. ECommerce enterprises will likely see a breakthrough as more homes adopt this technology. In 2021, this was undoubtedly an AI application to watch.
In-app Virtual Assistants For Better User-engagement
It is the second-most results- and value-driven Artificial Intelligence application in e-Commerce. In-app virtual chat assistance capabilities are available in 90% of e-commerce players’ applications to improve customer experiences and provide quick responses.
Virtual assistants powered by AI offer responses much like sales professionals, whether they are voice- or chat-enabled, and they help with lead conversions.
Conversational chatbots
Numerous well-known brands from various sectors, including Starbucks, Sephora, and Domino’s, have implemented chatbots to help their eCommerce operations. Customers can ask a bot any question they have about a product, and they will receive a timely answer. As they receive prompt responses to their inquiries, this may influence the customer’s choice to buy or not.
Auto-generated product descriptions
Purchase decisions are made by customers using product descriptions. Therefore, it is a crucial tool for influencing clients. eCommerce may use the power of AI to generate reports that speak to the buyer’s interests with the aid of AI content production technologies.
Virtual Experiences brought by AI, AR, and VR in eCommerce
Here is one of the top eCommerce AI use examples. Users of marketplace apps are getting a terrific virtual experience thanks to augmented reality (AR) and virtual reality (VR).
Users can search for things, find them, and virtually place them in their homes thanks to smartphone apps powered by AI and AR. As a result, the likelihood of lead conversion will increase with using such 3D representations of products in their environments.
The IKEA app is the best illustration of this situation. Customers can alter the product’s color and size and virtually check for visibility in their homes.
Upgraded delivery method
We can all agree that we want our purchases from eCommerce websites to be delivered as quickly as possible once we make a purchase. Customers can even sign up for Amazon Prime to receive deliveries the next day or the day after. Now, because of the power of AI and data-driven innovation, future applications of AI will see robots bringing goods to your door. And such a technology integration helps to advance services making things easier for customers.
Sales generation through wearable technology
The use of wearable technologies will be highly advantageous for eCommerce platforms. All wearables, whether FitBit or Apple Watch, may track the products you browse and utilize that information to suggest customized products. The eCommerce sector can gain real-time access to client data and methodically spot potential for product sales by combining wearable computing devices with CRM systems.
Conclusion
So, if you want a growing business and satisfied customers for your eCommerce business, you must incorporate AI into your business app. And to do so, you must connect with an experienced eCommerce app development company. Once you connect with the experts, your app development project completes without hassle. Therefore, without any delay, connect with a technical team to get your app developed immediately.
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