Journey To $100 Million

Here at Array Digital, we keep very detailed, meaningful KPIs (key performance indicators). In episode 200 of Journey to $100 Million, Erik explains a specific KPI that he was unhappy with after the second quarter of the 2019 business year. Starting in the first quarter of 2019, we created a “change in MRR” (monthly recurring revenue) KPI. This KPI measures how much our MRR increased and decreased over the quarter. At the end of quarter one, we ended the quarter at about +$8,000 - which we were thrilled with! During the second quarter, we got a little more sophisticated and split this KPI into two pieces. We created “new MRR” (new work we had gained) and “loss of MRR” (work we lost). What we found was that in the second quarter there was a shocking loss of MRR. We gained $25k in new MRR, but we lost $21k of MRR in the same quarter. So although we were up $4k, the amount of MRR lost was inexcusable. Every time we lose a client resulting in a loss of MRR, we call a lessons learned meeting and deconstruct what