article thumbnail

5 Interesting Learnings from Xero. As It Crosses $650m in ARR.

SaaStr

Aim for that at least in your SMB segment if you can, and if you can provide at least as much value as Xero. Customer Lifetime Value is 81 months, from SMB That’s impressive. That means an effective 81 month customer lifetime value from SMBs. This is a critical metric. and LTV is $2,398.

SMB 270
article thumbnail

A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

Average Revenue per Customer. Customer Lifetime Value (LTV). Customer Acquisition Cost (CAC). & That’s typically the AWS model, depending on how much space you take, service space, you will pay more. MRR, obviously. Or maybe ARR, depending on your model. Something we all hate, but still important.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to categorize expenses in a SaaS startup

Baremetrics

You’ll need this to calculate your Gross Margin , which further enables you to calculate Customer Lifetime Value and other key SaaS metrics. This is where you record all of the costs that go to providing your service, such as hosting and customer support payroll. Next, we set up your Sales & Marketing (S&M) costs.

Startup 81
article thumbnail

20 quick insights on Customer Success and SaaS metrics with Dave Kellogg

ChurnZero

Following the webinar, we invited Dave to give his rapid-fire takes on tracking the retention of auto-renew customers, calculating customer lifetime value as a startup, comping CSMs on expansion, determining the importance of measuring time to value, and much more. tech ops, AWS, technical support).

article thumbnail

SaaS Pricing Examples, Models, and Strategies That Drive Success

User Pilot

TL;DR A well-aligned pricing framework attracts the right customers, encourages product adoption , and maximizes customer lifetime value. A pricing model defines the specific structure of how customers are charged (e.g., value-based , competitive pricing). Let’s dive in! Amazon pricing example.

Pricing 104
article thumbnail

What is the Go-to-Market Strategy for AI Products? by Maja Voje

User Pilot

Referrals and affiliates – Referrals involve incentivizing customers to recommend your product, whereas affiliates include having an agreement with individuals or businesses to promote your product in exchange for a commission.

AI Search 105
article thumbnail

How to Choose The Right Adwords Agency

Neil Patel

Customer lifetime value: This measures the total value of a customer over the course of the relationship. Advertising can’t save awful products. How many conversions do you need to be profitable? Breakeven cost per conversion (CPA ) : The average cost of a conversion.