What does MRR mean?

Monthly Recurring Income or MRR (for its acronym in English Monthly Recurring Revenue) are those ingresos that are repeated from time to time and that become necessary income for the business.

For us to have MRR it is necessary that our product or the service is acquired by our clients continuously or from time to time. This income is key to our business since it gives us a minimum income from time to time. In this way, the company can be viable in the long term, since if there are periods in which they do badly, at least some income is assured.

MRR and the most common recurrence patterns

To ensure these monthly income it is necessary that we create a habit in the client thatoblige to come to our business to reacquire the good or service that you previously acquired.

Service companies have it easier: subscriptions are your best ally. Through a subscription, if the customer wants to continue using your service month to month (or quarter to quarter), a payment needs to be made. The payment that is made is the one that makes up the MRR of the business.

The streaming service Netflix is ​​the best example. It is a subscription that is renewed monthly in order to continue using your service.

Regarding the types of subscriptions, we find the fixed, the unlimited, the one-time payment for service or the one that is paid for a number of uses of the service.

MRR and product life cycle

El Product life cycle Or, what is the same, indicating to the user how long the product they have purchased will last, can help companies to formulate their MRR.

To do this, the company must study the behavior of users with the products it has purchased, listen to them through different channels and make speculations about what customers want based on their needs.

Research and innovation allow companies to obtain the benefits of customers, even after having sold them a final product or service.

Leave a Comment