Stax

MARCH 18, 2025

Online payment processing vs. in-person processing Online payment processing systems Online payment processing allows businesses to accept digital payments via eCommerce platforms, mobile apps, and websites. These systems are ideal for subscription-based and SaaS businesses with global customers.

Payment Services 88

Payment Services Merchant Services Payment Methods Payment Solutions 88

The Angel VC

MARCH 13, 2014

However if you are trying to calculate your customer lifetime value, you should only look at the number of paid conversions. That means that in your first month the retention could be less than 100%, if people cancel their paid subscription within that month. individual / team) it will give you your CLTV.

Customer Lifetime Value 189

Customer Lifetime Value Churn Retention Subscription 189

Baremetrics

SEPTEMBER 15, 2021

But, how do you decide which licensing model works best for you and your clients? We are going to walk you through a couple of the most popular pricing models—perpetual license and annual license, along with its variant subscription model —as well as mention a couple of the other popular ways to monetize software.

Payment Features 95

Payment Features Payments Payment Solutions Subscription 95

Subscription Flow

NOVEMBER 8, 2023

Modern commerce has witnessed subscription-based business models snowballing in popularity. Whether it’s streaming services like Spotify or Netflix, software, meal kits, or even a monthly book club, consumers are embracing the convenience and value that subscription services offer.

Payment Features 59

Payment Features Payment Solutions Payments Subscription 59

FastSpring

APRIL 11, 2019

We’ve seen explosive growth in the field of subscription and recurring billing with more and more software and SaaS companies discovering how impactful implementing a subscription model can be for their long-term growth plans. Subscribing to the idea of a subscription-based business model. .

SaaS Payments 99

SaaS Payments Payment Methods Payment Solutions Payments 99

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Finance 87

Finance Payment Features Subscription Payments 87

Stax

MARCH 18, 2025

However, a SaaS company providing global HR and payroll solutions may have a few hundred customers paying a monthly or annual feein other words, making recurring payments over a longer period of time. If customers want to make a switch to another SaaS competitor, it’s easier to do so, affecting the bottom line.

Scale 117

Scale Payment Services Payments SaaS Payments 117

Subscription Flow

NOVEMBER 20, 2023

Businesses are shifting from rigid, consumption-based business models to flexible ones that let users pay for the goods and services they use only as much as they use them. Therefore, reengineering the value chain and realigning teams to the new business model are necessary for this major shift.

Payments 59

Payments Payment Features Payment Services Subscription 59

ProfitWell

NOVEMBER 13, 2019

The trick is identifying a smaller set of metrics that really tell the story of your business and making them your key performance indicators, or KPIs. The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool.

Payment Features 80

Payment Features Subscription Customer Lifetime Value Benchmarks 80

FastSpring

MAY 30, 2019

We’ve all heard how effective subscriptions can be for growing companies. Perhaps one of the biggest benefits of implementing a subscription model is that it allows software companies to avoid the unpredictability of one-time sales by guaranteeing a steady stream of revenue. What is Annual Recurring Revenue?

Payments 75

Payments Finance Payment Features Subscription 75

FastSpring

SEPTEMBER 17, 2019

Subscription-based businesses are awesome! All you have to do is get a customer to buy once, and then you get recurring revenue without even thinking about it. While the recurring revenue part is true and awesome, retaining customers and creating a sustainable subscription-based business model can be super tricky.

Payment Features 75

Payment Features Subscription SaaS Payments Payment Services 75

Baremetrics

SEPTEMBER 28, 2021

You can see MRR, ARR, LTV, total customers, and more directly on your Baremetrics dashboard. Sign up for the Baremetrics free trial and start seeing more into your subscription revenues now. Using Baremetrics to monitor your business metrics 1. Active customers 2. Monthly recurring revenue (MRR) 3.

SaaS Payments 97

SaaS Payments Payments SaaS Payment Features 97

Tom Tunguz

JANUARY 14, 2014

I’ve modeled four different types of customer retention curves below, each with the same 3.5% average monthly churn, but with wildly different customer behaviors. I’ve seen businesses with all four types of churn characteristics from gaming companies to SaaS companies to ecommerce subscription companies.

Churn 124

Churn Customer Lifetime Value Startup Acquisition 124

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Think of these metrics less as numbers on a screen and more as indicators of business health. Churn is the make or break of your subscription business. Customer LTV. Without these, you won’t know how you’re faring.

Payment Features 85

Payment Features Subscription Metrics Business 85

CustomerSuccessBox

NOVEMBER 9, 2021

The SaaS Business Model. Their customers don’t buy a license once and for all. This is referred to as “Software as a Service” Imagine that a customer signs for a 24-month subscription, the SaaS vendor will not be able to recognize the revenue of these 24 months when the subscription starts.

Business Model 52

Business Model Business SaaS Software Review 52

Totango

JULY 1, 2022

Customer loyalty is a key to repeat business and referral generation for any business model. For B2B SaaS companies, customer loyalty drives subscription renewals and brand advocacy, making it a critical component of a profitable business model. First, we’ll discuss what customer loyalty is.

B2B 114

B2B B2C Underperforming Technical Team Business 114

Practical Advice on SaaS marketing

OCTOBER 8, 2010

Look at any of the well-established SaaS firms and you’ll see that customer acquisition expenses far exceed product development expenses. According to financial statements of nine large SaaS companies, sales and marketing expenses average 44% of annual subscription revenues. But the payback occurs over the life of the subscription.

Scale 100

Scale Marketing SaaS Customer Lifetime Value 100

User Pilot

NOVEMBER 28, 2023

Customer acquisition cost. The total expense of bringing a new customer on board. Customer churn rate. The percentage of subscribers who discontinue their subscriptions within a given time period. Customer lifetime value. Customer activation rate. CAC formula. Churn rate formula.

SaaS Payments 105

SaaS Payments Metrics Customer Lifetime Value Marketing 105

Totango

AUGUST 23, 2022

B2B customer journey touchpoints mark the roadmap toward successful outcomes for clients and CS teams. By charting the points in your SaaS customers’ journeys, you can plan how to deliver clients’ desired outcomes and satisfying experiences that promote subscription renewals and higher revenue. Customer support events.

B2B 122

B2B Payment Methods Payments SaaS Payments 122

FastSpring

NOVEMBER 22, 2022

Subscription model innovation: Customizable subscription models make it easier for SaaS companies to optimize their pricing and billing. Integration of PLG and sales-led business models: Supporting multiple GTM strategies has become the standard for SaaS. Revenue and Subscription Dashboards.

Merchant Services 78

Merchant Services Payments SaaS Payments Payment Solutions 78

User Pilot

APRIL 8, 2024

Free trials and freemium enable the users to explore the product and experience its value to convert them into paying customers. The self-service model enables users to buy (or cancel) the subscription, implement the product, learn how to use it, and access support without talking to customer services teams.

Strategy 100

Strategy Business SaaS Customer Lifetime Value 100

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. You’re starting a new business. How about your business model ? What is the Customer Acquisition Cost? Use CAC to align your business model.

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

User Pilot

FEBRUARY 12, 2025

While its a key metric for some businesses, for others, it might not be relevant at all. However, if your product depends on repeat engagement to drive customer lifetime value and loyalty , measuring user stickiness is important. Freemium models rely on sticky behavior for free-to-paid conversions.

Customer Lifetime Value 52

Customer Lifetime Value Engagement Retention Social Media 52

User Pilot

JULY 26, 2022

Customer retention is a SaaS metric that measures the ability of a product to retain customers over a long timeframe. In this way, you can measure the total value these customers deliver to you over a period of time. Retention KPI #2 Monthly recurring revenue. Monthly Recurring Revenue. product tutorials.

Retention 98

Retention Metrics Customer Lifetime Value Churn 98

FastSpring

JUNE 5, 2019

Besides having a fantastic product that people can’t get enough of, there are several things you can do to improve the customer experience and encourage customers to come back. Here are our top eight tips for building customer loyalty. Offer Subscriptions. Communicate Regularly.

Payment Methods 104

Payment Methods Payment Solutions Software Review Payment Services 104

User Pilot

JULY 30, 2023

You should put more focus on acquisition than retention when you’re launching new features /products or aiming to expand your customer base, or when the market share or churn rate is low. Customer retention requires more focus when you have high churn rates , high acquisition costs, and a business model reliant on recurring revenue.

Acquisition 98

Acquisition Retention Customer Lifetime Value User Experience 98

Baremetrics

AUGUST 30, 2021

SaaS companies generate their revenue from the subscription payments that customers pay for using their software. The eventual profit of a SaaS organization is the difference between the subscription revenue and the cost incurred in doing the above-mentioned activities. How essential is ARR in measuring business success?

SaaS Payments 98

SaaS Payments Payment Services Payments Outsourced Development 98

Blulogix

MARCH 21, 2024

By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Elevating Customer Retention in B2B Subscriptions For B2B subscriptions, customer retention is a pivotal factor underpinning the long-term success and sustainability of businesses.

Payment Features 52

Payment Features Subscription B2B Retention 52

User Pilot

JUNE 2, 2023

Measuring your adoption rates will give you insights to boost free-to-paid conversion, retain more users, and turn customers into advocates. Reaching product adoption is critical for subscription-based business models where revenue comes after the initial conversion. Why should you measure product adoption?

Metrics 98

Metrics Customer Lifetime Value Churn Onboarding 98

Baremetrics

SEPTEMBER 10, 2021

We need to differentiate among three similar sounding but very different concepts: revenue stream, revenue model, and business model. You can think of these as a turducken of business jargon with a revenue stream being within a revenue model which is in turn inside a business model. Table of Contents.

Payments 102

Payments SaaS Payments Revenue Payment Solutions 102

ChurnZero

FEBRUARY 9, 2021

Customer success is one of the hottest B2B trends since the advent of the subscription business model. Learn how it’s different from customer support, what makes a successful CS sales professional and CS leader, and how to align CS with the larger organization.

Customer Success 98

Customer Success Customer Lifetime Value Scale Consulting 98

User Pilot

FEBRUARY 26, 2024

Free to paid conversion rate Also known as the free trial conversion rate , this metric measures the percentage of users who go from free trial users to paying customers. It, thus, measures the effectiveness of your trial in guiding users toward paid subscriptions. How to measure customer churn rate. Feature usage rate formula.

Metrics 104

Metrics Customer Lifetime Value Scale SaaS 104

Baremetrics

OCTOBER 7, 2021

While not every piece is needed to understand the performance of your company, you’ll need to track more than one sales KPI to figure out how to best generate recurring revenue. In this article, we are going to go through 10 of the best sales KPIs available for SaaS companies that bring in revenue through a subscription model.

Payments 98

Payments Sales SaaS Payments Underperforming Technical Team 98

User Pilot

JANUARY 15, 2024

Key metrics to include in your dashboards include retention rates, user stickiness, monthly active users, conversion rates, customer acquisition costs, customer lifetime value, and monthly recurring revenue. The metric can also be used to measure the performance of your customer success or customer support teams.

Metrics 105

Metrics SaaS Customer Lifetime Value Retention 105

Blulogix

JANUARY 5, 2024

Key Definitions in Subscription Billing: Demystifying the Jargon By BluLogix Team Welcome to the fourth installment of our comprehensive guide on selecting the right subscription billing platform. Before we go much further, let’s go deep into essential definitions and concepts in the world of subscription billing.

Payment Features 52

Payment Features Subscription Payment Services Payments 52

User Pilot

MARCH 6, 2023

TL;DR Product-led acquisition (PLA) is an organic way of growing a customer base through recommendations from existing customers. It is often used by product-led businesses to drive scalable business growth. Product-led growth is a business model in which the product is the main driver of acquisition.

Scale 98

Scale Acquisition Scaling Customer Lifetime Value 98

User Pilot

DECEMBER 20, 2022

SaaS business models depend on repeat purchases to grow revenue and meet profit goals. This makes it crucial for them to map their marketing efforts based on the customer journey and grow the business efficiently. As the SaaS model is subscription-based, it’s heavily reliant on customer retention.

Scale 98

Scale Software Review Customer Lifetime Value Marketing 98