ACV vs ARR: key differences

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Stay tuned for Nutshell’s new releases!
There’s a lot on this quarter’s roadmap, and our team is excited to bring you new features and updates to help your team accomplish even more in Nutshell so you can sell better!

If you want to stay in the know about features as they launch, keep an eye on our Product Updates page or subscribe to the Shipping News newsletter for monthly updates. And if you have questions about these new enhancements, you can always reach out to our support team for help. Depending on your industry or business model, there are numerous metrics by which to measure revenue and business growth. If you operate on a subscription-based sales model (commonly seen in SaaS), you are probably familiar with or at least encountered the terms ARR and ACV.

But what do they mean, and how are they relevant to your business?

In this guide, we’ll explain what ACV and ARR are france phone numbers and show you how to calculate each and use them to boost your sales and marketing results.

Table of Contents
What is ACV in sales?
What is ARR?
The importance of ACV
Who needs to use ACV and what for?
How to calculate ACV
How to calculate ARR
Strategies to increase ACV
ACV FAQs
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What is ACV in sales?
ACV stand for annual contract value, which represents the annual worth of an ongoing customer