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 304

Software Sales Hiring Customer Lifetime Value Scale 304

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 270

SMB Customer Lifetime Value AWS Churn 270

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 279

Sales Hiring Scale Churn Metrics 279

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 223

Retention Payment Features Subscription Customer Lifetime Value 223

User Pilot

OCTOBER 19, 2024

A customer tweeting about their positive experience can attract others to try out your product. Increases the customer lifetime value The customer lifetime value (CLTV) refers to the average amount of money you can expect to earn from a single customer through their relationship with you.

Business 111

Business Underperforming Technical Team Customer Lifetime Value Systems Review 111

User Pilot

NOVEMBER 14, 2024

Customer expansion drives recurring revenue and long-term growth. By increasing the value provided to existing customers through different expansion tactics, companies can reduce churn and enhance customer lifetime value. Monitor the performance of your expansion strategy Does your expansion strategy work?

Strategy 105

Strategy Payment Solutions Payments Customer Lifetime Value 105

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 230

AI Outsourced Development Customer Lifetime Value Cybersecurity 230

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 265

Revenue Sales Hiring Customer Lifetime Value Churn 265

User Pilot

OCTOBER 31, 2024

Focus on actionable product metrics While it’s easy to get lost in a sea of metrics (like churn rate , customer lifetime value, or monthly recurring revenue) not all metrics are equally useful. The most actionable metrics are those that provide insight into why your product is performing a certain way.

Strategy 105

Strategy Underperforming Technical Team Government Customer Lifetime Value 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

Stax

MARCH 16, 2025

Key metrics include customer churn rate, revenue churn, and net revenue retention (NRR). Lower churn leads to higher customer lifetime value (LTV), better brand reputation, and increased revenue. Happy customers bring referrals, fueling organic growth.

Payment Solutions 88

Payment Solutions Software Review Churn SaaS Payments 88

ChurnZero

APRIL 11, 2025

The right onboarding strategy means more than just getting a customer using your product. User adoption drives down user acquisition costs, stretches marketing resources, increases customer lifetime value, and brings flexibility to your teams product resource investments.

Onboarding 86

Onboarding Strategy Technical Review Systems Review 86

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 245

Sales Hiring Customer Success Scale Customer Lifetime Value 245

ChurnZero

APRIL 25, 2025

And since customer lifetime value and NRR are integral to broader revenue goals, it is time for CS to embrace the predictive, in which strong forecasting begets lower churn. Weve outlined a process for data driven customer success renewals forecasting, plus some extra tips on how ChurnZero can help. Where can you start?

Forecasting 52

Forecasting Customer Success Payments Data 52

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

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!

Payment Features 167

Payment Features Subscription Payment Methods Payment Solutions 167

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 289

Underperforming Technical Team Enterprise Scale Payments 289

User Pilot

JUNE 28, 2023

Use customer satisfaction metrics, such as customer effort, NPS , and customer satisfaction score, to help measure customer experience ROI. Business growth metrics, such as customer retention rate , customer churn rate, and customer lifetime value , can be used to measure customer experience ROI.

Customer Lifetime Value 98

Customer Lifetime Value Software Review Scale Retention 98

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

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

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 105

Product Marketing Metrics Customer Lifetime Value Social Media 105

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 105

SaaS Payments Metrics Customer Lifetime Value Marketing 105

User Pilot

NOVEMBER 6, 2023

TL;DR Customer growth is the expansion of a company’s customer base over time. To calculate CLV , multiply the customer value by the average customer lifespan for your product. However, the formula provides a good estimate and can guide decisions like how much to invest in driving customer growth.

Customer Lifetime Value 103

Customer Lifetime Value Retention Churn Acquisition 103

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 111

Retention Metrics Strategy Scale 111

User Pilot

NOVEMBER 19, 2023

TL;DR Cross-selling is a sales and marketing tactic that helps increase the average order value by selling additional or complementary products to current customers. Effective cross-selling offers the following benefits: Adds more value for existing customers. Improves customer retention.

Customer Lifetime Value 101

Customer Lifetime Value Strategy SaaS Business 101

User Pilot

JULY 13, 2023

The important metrics you should use to measure the growth of a company are: Customer acquisition cost (CAC) assesses the average cost to acquire new customers and evaluates the efficiency of sales and marketing efforts. Customer lifetime value (CLV) determines the total revenue a customer generates throughout the relationship.

Metrics 98

Metrics Customer Lifetime Value Benchmarks Churn 98

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 105

Metrics Customer Lifetime Value Business SaaS 105

User Pilot

MAY 1, 2024

Product experience management helps to: Enhance the entire customer journey and deliver personalized experiences. Improve customer retention by delivering exceptional experiences. Increase customer lifetime value by adding more value. Improve customer acquisition with positive word-of-mouth.

Customer Lifetime Value 105

Customer Lifetime Value User Experience Retention Scale 105

User Pilot

NOVEMBER 29, 2023

Conversion rate optimization marketing helps to lower customer acquisition costs, increase customer lifetime value , and expand MRR. PQL to paying customer conversion rate: 20% to 40%. This is because you don’t have to spend as much money on advertising and marketing to acquire new customers.

Customer Lifetime Value 102

Customer Lifetime Value Marketing Benchmarks Acquisition 102

SaaStr

MARCH 28, 2025

But for us, six quarters is the target because customers are expected to last longer than four years.” ” This focus on sustainable economics has helped Bill.com maintain profitability while continuing to scale.

SMB 130

SMB Payments Payment Services SaaS Payments 130

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

OCTOBER 5, 2023

This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions. Additional metrics to track alongside the CAC payback period include Customer Lifetime Value (CLV or CLTV) and the LTV:CAC ratio.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Acquisition Payment Solutions 105

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 105

Customer Lifetime Value SaaS Underperforming Technical Team Churn 105

User Pilot

JULY 22, 2024

To assess how well the product retains existing customers, calculate the customer retention rate. Customer churn rate is the percentage of customers who stop using the product within a given timeframe. By analyzing retention patterns, you can also learn how long customers stay engaged and when you need to reengage them.

Engagement 103

Engagement Metrics Customer Lifetime Value Benchmarks 103