It’s become a best practice to take this equation and build dashboards out of its inputs, so that in any given month you know how the underlying components are trending. If your goal is to grow 3x year over year, and sign-ups are way down, then it becomes clear how much churn has to be improved in order to still make the target—it’s just some simple math. Overlaying revenue is easy, too. You just add two more variables, multiplying the active users number with the average revenue per active user (ARPU).
