SaaStr

JANUARY 12, 2021

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

Customer Lifetime Value 282

Customer Lifetime Value SMB Churn Scale 282

SaaStr

MAY 19, 2019

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 255

SMB Customer Lifetime Value AWS Churn 255

SaaS Metrics

SEPTEMBER 15, 2024

Join us as we uncover essential metrics for tracking Customer Lifetime Value (CLV) in SaaS and discover the secrets to sustainable growth. The post How to Track Customer Lifetime Value (CLV) in SaaS first appeared on SaaS Metrics.

Customer Lifetime Value 52

Customer Lifetime Value SaaS Metrics 52

SaaStr

JUNE 13, 2022

Also, of course, as you need to calculate and understand Customer Lifetime Value, Churn is going to be the #1 factor here — as an input. Customer Lifetime Value is just Churn inverted.

Sales Hiring 275

Sales Hiring Scale Churn Metrics 275

Tom Tunguz

SEPTEMBER 10, 2024

Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention. Over the next two decades, we analyzed, quantified, instrumented, & optimized many aspects of the SaaS GTM. The new software GTM playbook has yet to be written.

Software 259

Software Sales Hiring Scale Customer Lifetime Value 259

SaaStr

MAY 13, 2021

. #429: In this episode, ProfitWell Founder & CEO Patrick Campbell shares benchmarks from over 23,000 companies and offers a helpful framework to re-evaluate your retention strategy and increase your CLV (Customer Lifetime Value) between 10 and 60%. Watch the full video here.

Retention 192

Retention Subscription Payment Features Customer Lifetime Value 192

Valuize Consulting

OCTOBER 18, 2024

The path forward may be challenging, but the potential rewards for services teams, their organizations, and their customers are substantial. By focusing on customer value delivery, services teams will continue to play a pivotal role in shaping the future of B2B relationships.

Customer Lifetime Value 52

Customer Lifetime Value Payment Services Technical Advisors Payment Solutions 52

SaaStr

FEBRUARY 14, 2021

But that 5-seat Team edition sale customer … is still there in Year 2 and Year 3, paying you. And maybe even adding seats.

Revenue 263

Revenue Sales Hiring Customer Lifetime Value Churn 263

User Pilot

OCTOBER 28, 2024

Ever wonder why some products instantly click with users while others get abandoned faster than New Year’s resolutions? The secret often lies in those crucial first moments – your user onboarding. But here’s the thing: getting users to say “wow” instead of “why?”

Customer Lifetime Value 87

Customer Lifetime Value Onboarding Strategy Education 87

Tom Tunguz

FEBRUARY 20, 2024

The company embarked on a suite strategy 5 years ago to capture more customer budget by cross-selling products. That idea works … Our 2 platform customers have an average customer lifetime value that is more than 5 times that of our single platform customer. …but only up to a point.

AI 187

AI Outsourced Development Cybersecurity Customer Lifetime Value 187

The SaaS CFO

SEPTEMBER 8, 2022

A SaaS founder emailed me recently about the customer lifetime value metric. Customer lifetime value (LTV or CLTV) […]. SaaS revenue models are changing, and so should our SaaS metrics. His SaaS company has significant usage revenue in addition to traditional subscription MRR.

Customer Lifetime Value 104

Customer Lifetime Value Revenue Payment Features Subscription 104

Subscription Flow

APRIL 18, 2024

In such a scenario, what subscription-based businesses like these dating apps usually do is they redirect their energies into improving their customer lifetime value by reworking their customer engagement model. What is the Customer Lifetime Value and Why Does it Matter (in the long run)?

Engagement 105

Engagement Customer Lifetime Value Revenue Subscription 105

Intercom, Inc.

APRIL 14, 2020

Key takeaway: “A study by Price Intelligently showed that a 1% increase in customer acquisition affects your bottom line by about 3.3%. But improving your retention rate by 1% extends customer lifetime value and increases your bottom line by around 7%. Reduce churn by re-engaging your customers.

Retention 245

Retention Customer Lifetime Value Churn Acquisition 245

SaaStr

NOVEMBER 27, 2021

Rather, Customer Success owns the customer from point of inception (sometimes pre-close) all the way through the entire life and lifecycle of the customer. Sales closes the customer, and Customer (or Client) Success takes it from there — for years.

Sales Hiring 246

Sales Hiring Customer Success Scale Customer Lifetime Value 246

SaaStr

NOVEMBER 27, 2021

Rather, Customer Success owns the customer from point of inception (sometimes pre-close) all the way through the entire life and lifecycle of the customer. Sales closes the customer, and Customer (or Client) Success takes it from there — for years.

Sales Hiring 241

Sales Hiring Customer Success Scale Customer Lifetime Value 241

FastSpring

JANUARY 7, 2021

You should be looking at several different metrics when determining whether your customers give you the kind of loyalty you want. Customer Lifetime Value (CLV). A customer lifetime value number is defined by the monetary value they will bring to your future profits. Net Promoter Score (NPS).

Customer Lifetime Value 147

Customer Lifetime Value Scale Forecasting Engineering 147

Intercom, Inc.

OCTOBER 18, 2021

In the early days of the analytics team at Intercom, our tracking mostly consisted of typical SaaS company finance metrics , such as the conversion rate of our customers from trial to paid, and monthly recurring revenue.

Metrics 269

Metrics Customer Lifetime Value User Experience Engagement 269

Neil Patel

MARCH 2, 2021

While this is the quick and dirty calculation, what happens if customers make more than one purchase over their lifetime? The purpose of customer lifetime value (CLV) is specifically designed to resolve this. Customer acquisition cost: ($1,020,000 / 1,020,000 customers) + $1.00 per customer = $2.00.

Acquisition 145

Acquisition Metrics Customer Lifetime Value Advertising 145

Intercom, Inc.

AUGUST 23, 2022

. “93% of customers are more likely to remain loyal to companies with excellent support” Your support experience is an opportunity to delight your customers – by better educating them and resolving their issues, you can improve the relationship they have with your brand. How to drive retention from customer support.

Customer Support 211

Customer Support Retention Headcount Customer Lifetime Value 211

Intercom, Inc.

NOVEMBER 7, 2018

An even better way to use CAC: pair it up with Customer Lifetime Value (LTV). That said, all this focus on Customer Acquisition Cost can actually really cripple your business. By looking at Customer Lifetime Value (LTV), or the revenue you get from a customer over their entire lifetime working with your business.

Acquisition 202

Acquisition Scale Advertising Customer Lifetime Value 202

Practical Advice on SaaS marketing

AUGUST 1, 2020

The SaaS metrics gurus express this as customer acquisition cost (CAC) relative to customer lifetime value (LTV). See “ Acquiring Customers Ain’t Cheap.”) Think of customer acquisition like a machine A former colleague explained the concept to me like this.

Marketing 152

Marketing Customer Lifetime Value Social Media Acquisition 152

SaaStr

JULY 30, 2024

As their needs are fulfilled, confidence and trust build, and the product’s perceived value goes up. The realized value has to turn into customer lifetime value (CLV). How Do You Monetize? Step three is monetization. When activations start, magic happens.

Underperforming Technical Team 280

Underperforming Technical Team Enterprise Scale Payments 280

Intercom, Inc.

SEPTEMBER 10, 2020

In the world of SaaS, this is usually in the form of unit economics : a customer lifetime value (LTV) to customer acquisition cost (CAC) ratio of greater than three, and a payback period of 12 months or less. And you should just throw everything and the kitchen sink at them to make that happen.”.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

FastSpring

NOVEMBER 2, 2023

1ClickPay, Trial Hopping Prevention, and Offers API are designed to boost your conversion rates and increase customer lifetime value. We are excited to share the release of three new groundbreaking features designed to turbocharge your subscription revenue!

Subscription 139

Subscription Payment Features Payment Methods Payment Solutions 139

USIO

JANUARY 15, 2024

Customer Retention: Subscriptions encourage customer loyalty as users are committed to the service for a predefined period. This reduces the churn rate, ensuring a more stable customer base. Lifetime Value (LTV): Subscription models often result in higher customer lifetime value.

SaaS Payments 130

SaaS Payments Payment Services Payments Payment Solutions 130

Totango

FEBRUARY 23, 2024

You want that customer to stay with you a long time and potentially become a repeat buyer or an advocate to bring more prospects into the top of your funnel.” This partnership helps to activate the flywheel and propel growth from the existing customer base.

Scale 94

Scale Customer Lifetime Value Acquisition Customer Success 94

Incredo

JUNE 25, 2019

When you have developed a lead nurturing strategy to convert your freemium users into paying customers (doesn’t work when you don’t keep in touch with them). When your Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) ratio (LTV:CAC) is a positive number (doesn’t work when you invest too much in it).

SaaS 236

SaaS Pricing Software Review Acquisition 236

User Pilot

JANUARY 28, 2024

Customer Lifetime Value (CLV) indicates long-term customer revenue potential, guiding retention and expansion strategies. In this case, this could be user retention rate, monthly active users , and customer lifetime value. This metric is important for understanding the long-term value of customers.

Metrics 90

Metrics Customer Lifetime Value Business SaaS 90

User Pilot

APRIL 10, 2024

The customer retention rate is calculated by subtracting new users from the final user count, dividing by the initial user count, and multiplying by 100. Other retention metrics to track include product stickiness, customer lifetime value, expansion MRR, and NPS scores. Customer lifetime value formula.

Retention 96

Retention Metrics Strategy Management 96

Incredo

JULY 14, 2019

. #2 Helps recover CAC (Customer Acquisition Cost) fast as you receive your invested money up front (if they subscribe to an annual plan and pay in advance). #3 3 Reduces churn rate and increases CLV (Customer Lifetime Value) as your customers spend at least a year with you. #4

Payment Features 184

Payment Features SaaS Payments Payment Methods Subscription 184

User Pilot

SEPTEMBER 4, 2024

This actionable metric shows how much you’re spending to acquire each new customer. By comparing CAC to customer lifetime value , you can determine if your acquisition strategies are sustainable and identify areas to optimize marketing spending for better ROI. Actionable metrics: Customer Acquisition Cost (CAC).

Product Marketing 82

Product Marketing Metrics Customer Lifetime Value Marketing 82

User Pilot

MARCH 14, 2024

You can use customer analytics to create targeted marketing campaigns, inform product development, and reduce churn , among other things. Benefits of analyzing customer data: Understand customer behavior patterns. Increase customer lifetime value. There are four categories of customer analytics categories.

Customer Lifetime Value 86

Customer Lifetime Value SaaS Underperforming Technical Team Churn 86

User Pilot

NOVEMBER 28, 2023

The total expense of bringing a new customer on board. Customer churn rate. Customer lifetime value. The total revenue a company can expect from a single customer over the course of their relationship. Customer activation rate. Churn rate formula. Tracking in-app events with Userpilot.

SaaS Payments 80

SaaS Payments Metrics Customer Lifetime Value Marketing 80

User Pilot

MARCH 12, 2024

Customer lifetime value The customer lifetime value is the average revenue a business can expect to earn throughout its relationship with a customer. It is one of the most important sales metrics that can tell you the average value of a customer to your business over time.

Metrics 88

Metrics Scale Customer Lifetime Value Business 88

User Pilot

AUGUST 9, 2023

Customer retention rate shows how many customers return to your product, whereas churn rate measures how often customers leave. Other important customer retention metrics are revenue churn rate, Net Promoter Score , repeat purchase rate, and customer lifetime value.

Retention 88

Retention Customer Lifetime Value Churn Subscription 88

User Pilot

MAY 2, 2024

TL;DR Customer retention is the ability to keep your customers actively using their products. It’s crucial for SaaS businesses because it drives revenue growth, increases customer lifetime value , reduces customer acquisition costs , and fosters positive word-of-mouth marketing.

Retention 88

Retention Metrics Strategy Scale 88

Incredo

JULY 8, 2019

This is an approximate number and depends on the niche you operate in as well as your Customer Lifetime Value. If you predict to make $100.000 next year, then you should allocate at least $10.000 to your SaaS marketing. If the niche is highly competitive, then get ready to invest a little bit more. #4

Outsourcing Services 200

Outsourcing Services Scale Outsourced Development Sales Hiring 200