{ "docId": "019f6b8f-703a-73b2-9ce7-4c20d37b9d2c", "docSlug": "jarvis-the-ultimate-guide-to-arr", "documentTitle": "The Ultimate Guide To ARR", "authorId": "the-ultimate-guide-to-arr", "authorName": null, "documentKindSlug": "deck", "documentKindLabel": "Deck", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": null, "orientation": null, "aspectRatio": null, "pageNumber": 20, "pageCount": 72, "prevPage": 19, "nextPage": 21, "slideType": "key_messages", "function": "establish_context", "density": "overcrowded", "nDataPoints": 0, "notes": "Page 20 of a document, likely a textbook or guide on SaaS metrics.", "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019f6b8f-703a-73b2-9ce7-4c20d37b9d2c/20", "deckHref": "/decks/019f6b8f-703a-73b2-9ce7-4c20d37b9d2c", "deckJsonHref": "/decks/019f6b8f-703a-73b2-9ce7-4c20d37b9d2c.json", "deckAnchorHref": "/decks/019f6b8f-703a-73b2-9ce7-4c20d37b9d2c#slide-20", "components": [ { "bbox": null, "kind": "paragraph", "text": "Work with Sales and Customer Success to roll out customer health dashboards and actively monitor response and resolution times with support. Building the right habits early on will pay dividends down the line.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7994881b-eccb-440b-b187-d20d3421d44c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "Understanding fluctuations in these components tells you whether customers tend to increase or decrease spend over time, in addition to the consistency in the direction of that spend.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7ae6d711-a530-44e6-9a79-781fa8e1bd26", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "The main thing to keep in mind when looking at Expansion and Contraction, and other components that we'll cover next (e.g., Churn), is that in order for a customer's action to fall into the Expansion/Contraction bucket, they must hold an active subscription vs. cancelling their subscription and no longer be considered a customer for the purposes of ARR reporting. (See Figure 2.5.)", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7aff07c3-2743-458a-9292-465e7a084811", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "Compare that to turning your early adopters into evangelists who promote your product for you. \"Word of Mouth\" is a beautiful thing. It costs you (almost) nothing in dollars invested, which is why almost every breakthrough startup shows signs of organic growth (with minimal spend on Sales and Marketing), and investors are so keen to track expansion dynamics.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ae450d4f-f1e1-4677-80c7-a2f9c8023c9e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "First impressions are critical to a customer's likelihood of expanding or contracting in the future. Be diligent in tracking engagement and activation metrics as new customers are onboarded. These will be the best predictors of whether a customer will expand or contract in the future.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b3e8c9dc-469d-4b84-b30c-844286ab4d63", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "paragraph", "text": "Consider it this way: acquiring new customers is time-consuming and expensive. It often requires a large budget for demand generation, a dedicated new business Sales team, and months of engagement to get a cold lead to buy your product.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f7c07f6f-b190-418e-9bca-d6c83db54752", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "subtitle", "text": "WHY IT MATTERS", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4175e8c4-a2d8-4c66-a4e8-3aa2cd82060e", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "subtitle", "text": "HOW TO OPTIMIZE IT", "attrs": null, "subkind": "subtitle", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "85867670-abe0-4742-97c6-c07158fcf803", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Logical chain", "slug": "logical-chain", "agent": null, "layer": "slide", "matchId": "c7091d48-1b35-4cb1-9d65-31ed6590b002", "evidence": "The main thing to keep in mind when looking at Expansion and Contraction, and other components that we'll cover next (e.g., Churn), is that in order for a customer's action to fall into the Expansion", "confidence": 0.7 } ], "frameworks": [], "arcBeats": [], "loops": [ { "to": 72, "from": 10, "name": "Logic Chain", "slug": "01-logic-chain", "bestFor": "Skeptical audiences, controversial recommendations, rigorous analysis", "matchId": "e8faec0b-9f7e-48c0-9872-9bc2ef4cc4c5", "evidence": "The document presents a logical sequence of information, starting with the components of ARR and building up to benchmarking.", "position": 0, "objective": "To understand the components of ARR and how they relate to each other.", "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... (Inevitable conclusion)", "confidence": 0.6, "description": "Build an airtight chain of logic where each premise leads inevitably to the conclusion" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }