Marketplace/Metrics/New accounts

New accounts

The number of accounts that became active during the period
New accounts

What is new accounts?

The new accounts metric, also known as new logos, quantifies the number of customers or clients that started using the company's products or services during a specified period. It provides insight into the total count of new customers, disregarding revenue amounts.

It is part of the active accounts waterfall, which can be broken down into its different componenets start of period accounts, new accounts and churned accounts.

Why is it important to measure churned accounts?

For businesses, particularly in the SaaS industry, tracking new accounts is crucial for evaluating customer acquisition and market penetration. This metric typically spans a specific time frame, such as a month, quarter, or year, depending on the company's chosen analysis period and business model. By monitoring the number of new accounts over time, companies can assess the effectiveness of their marketing and sales efforts and identify trends in customer acquisition.

Overall, measuring the new accounts metric empowers companies to make data-driven decisions concerning customer acquisition strategies, product positioning, and market outreach to cultivate a growing and diverse customer base.

How is new accounts calculated?

The new accounts metric is calculated by the summing the number of accounts that are active in the period, but had no ARR in the preceding period.

new accounts
∑(Active accounts in the current period with no ARR in the in the preceding period)
Also known as: New Logos
New accounts
New accounts
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