This path is for you if finance uses ARR, churn, and retention and you are not in finance. Parts pin those words down, then show a cohort chart that does not lie. Start with the first part on this page. Do not borrow a definition from a blog and put it in a board deck.
- 1 What are ARR and MRR? Recurring revenue explained for non-finance people ARR and MRR sound simple until three teams report three different growth numbers. Learn the non-finance vocabulary, what each metric includes, and how to ask definition questions without pretending to be FP&A.
- 2 How to define customer churn and retention so everyone agrees Separate logo churn, revenue churn, gross retention, and net retention before you argue. Same word, different formulas, different decisions.
- 3 How to build cohort retention charts that don’t mislead Cohort retention charts need honest periods and clear incomplete cells. Build the table first, then the heatmap, so calendar scars and survivor tricks do not hide.
