What does iARR measure?

Question

Options

• Aour ability to monitor product utilization, and financial growth collectively
• Bour ability to increase renewal rates through pricing controls
• Cour ability to expand upon existing customer value
• Dour ability to internally align renewable resources

• A
  2% (1)
• B
  5% (3)
• C
  92% (57)
• D
  2% (1)

Explanation

iARR (incremental Annual Recurring Revenue) measures the new recurring revenue generated from existing customers - through upsells, cross-sells, and account expansions - making C correct. It specifically tracks how well a company grows value within its current customer base, not just acquires new logos.

• A is wrong because iARR is a financial growth metric only; product utilization monitoring is a separate discipline (typically tracked via product analytics).
• B is wrong because renewal rates and pricing controls relate to retention/NRR (Net Revenue Retention) metrics, not incremental expansion.
• D is wrong because "internally align renewable resources" is a fabricated phrase with no standard business meaning - a classic distractor playing on the word "renewable" in ARR.

Memory tip: The "i" in iARR stands for incremental - think "i = increase from existing customers." If you remember that ARR is about recurring revenue and "i" means growth on top of what you already have, C is the only answer that fits.

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