Tom Tunguz

FEBRUARY 20, 2024

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. For our 3 platform customers, that is more than 40x larger. Since then, Palo Alto has acquired 16 companies. …but only up to a point.

AI 230

AI Outsourced Development Customer Lifetime Value Cybersecurity 230

User Pilot

OCTOBER 31, 2024

Depending on these gaps (and your budget), you’ll need to decide whether to invest in buying data or building a data infrastructure. For instance, if you find that you lack the infrastructure to integrate data from different platforms, you can then invest in new tools or reorganize data governance processes. Outdated technology.

Strategy 105

Strategy Underperforming Technical Team Government Customer Lifetime Value 105

SaaStr

FEBRUARY 14, 2021

But from a business model perspective, why invest in sales, demand gen, and all that if you don’t have to? But that 5-seat Team edition sale customer … is still there in Year 2 and Year 3, paying you. And competition thus ends up being even fiercer. Let me just share one semi-obvious piece of math and learning.

Revenue 264

Revenue Sales Hiring Customer Lifetime Value Churn 264

The Angel VC

DECEMBER 20, 2013

[Update 01/17/2015: There's a new company called ChartMogul ( which we invested in ) which makes it easy to get a real-time dashboard similar to the template below. Check it out! ] [Note: This post first appeared as a guest post on the blog of Totango.

Startup 199

Startup Customer Lifetime Value SaaS Metrics 199

SaaStr

JULY 30, 2024

The realized value grows as users derive value from the product, increasing engagement, retention, and stickiness. By scaling your PLG motion, you can achieve higher revenue per employee because you aren’t investing as many dollars in messaging, marketing, and building the big sales teams. How do I learn about this product?

Underperforming Technical Team 288

Underperforming Technical Team Enterprise Scale Payments 288

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

Intercom, Inc.

NOVEMBER 7, 2018

divided by the number of customers acquired. It’s a really useful number to help you calibrate your investment and make sure that you’re making the right decisions for your growth. Put simply, if your Customer Acquisition Cost is greater than your revenue for a long enough period of time, you’ll go out of business.

Acquisition 202

Acquisition Scale Advertising Customer Lifetime Value 202

Neil Patel

MARCH 2, 2021

They can determine a company’s profitability by looking at the difference between how much money can be extracted from customers and the costs of extracting it. They use it to optimize the return on their advertising investments. The purpose of customer lifetime value (CLV) is specifically designed to resolve this.

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

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

User Pilot

JUNE 28, 2023

This article will help you measure your ROI of customer experience and optimize your CX program. TL;DR Customer experience ROI is the financial value made from customer experience improvements. You can collect customer feedback using NPS or CSAT surveys to benchmark the current customer experience level.

Customer Lifetime Value 98

Customer Lifetime Value Software Review Scale Retention 98

Incredo

JUNE 25, 2019

They become free from the risk of wasting money and once start paying, they will be sure it’s worth their investment. 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).

SaaS 236

SaaS Pricing Software Review Acquisition 236

Valuize Consulting

APRIL 4, 2025

Understanding the True Cost of Customer Success: Every customer interaction has a cost. Time tracking reveals the real investment required to support various segments and individual accounts. Strategic Role Alignment: Ensuring the Right People, the Right Tasks Not all work creates equal value.

Scaling 52

Scaling Data Healthcare Cost optimization & reporting 52

User Pilot

AUGUST 6, 2023

While a multi-channel experience could be sufficient to drive acquisition, an omnichannel customer experience has the added bonus of increasing retention as the quality of customer care always remains consistent across all platforms. You also need to store customer data in an effective and accessible manner. Increases LTV.

Investment 97

Investment Banking Social Media Customer Lifetime Value 97

SaaSOptics

JUNE 9, 2022

By investing in you and your venture, they’ve put their money on the line, and they want to see a return. In this case, investors would be investing in your idea rather than an MVP. Finally, companies that need an investment round to help them keep pace with their goals for growth also benefit from funding.

Investment 82

Investment Venture Capital Scale SaaS 82

User Pilot

JULY 22, 2023

Let’s dive in to find out and also discuss how you can improve both your customer acquisition cost and lifetime value. TL;DR Customer acquisition cost (CAC) is the money a business spends on acquiring new customers. What is customer lifetime value (LTV)? Customer Acquisition Cost.

Acquisition 94

Acquisition Customer Lifetime Value Onboarding Retention 94

SaaStr

MARCH 28, 2025

But for us, six quarters is the target because customers are expected to last longer than four years.” Focus on customer experience: Bill requires all 2,200 employees to use the product to stay connected to the customer experience.

SMB 130

SMB Payments Payment Services SaaS Payments 130

SaaStr

FEBRUARY 25, 2020

The other thing that we want to do is we want to increase that customer lifetime value or CLTV because not only is that easier to sell our current customers more than acquiring new customers, but it’s a way of continuing to grow the business at a faster rate even if you’re not adding as many new customers.

Scale 241

Scale Underperforming Technical Team Sales Hiring Software Review 241

User Pilot

SEPTEMBER 4, 2024

Instead, use a customer engagement score. This actionable metric combines factors like login frequency, feature usage , and time spent in the app to measure how invested users are in your product. It helps identify at-risk customers and opportunities for increasing engagement. For improved retention and customer satisfaction.

Product Marketing 105

Product Marketing Metrics Customer Lifetime Value Marketing 105

Blulogix

DECEMBER 5, 2024

Managing these variables manually is not practical, especially as the number of customers grows. MSPs must invest in automated systems that can manage these complexities and ensure that customers are billed accurately. A flexible pricing engine also plays a crucial role in improving the customer experience.

Payment Features 59

Payment Features Subscription Pricing Technical Review 59

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Acquisition Payment Solutions 105

Incredo

JANUARY 14, 2020

Their future customers don’t need much education about using the software. Monthly investment size isn’t big, so prospects don’t need much social proof either. We have also seen SaaS companies that invest thousands of dollars in lead magnets, create content on the benefits of their product, spend weeks in nurturing their leads.

Sales Funnel 239

Sales Funnel SaaS Sales Social Media 239

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. In short: The lower the CAC, the more effective your GTM strategy is.

SaaS Payments 105

SaaS Payments Metrics Customer Lifetime Value Marketing 105

Incredo

JULY 8, 2019

How much percent of your gross revenue should you allocate to your marketing investments ? This is an approximate number and depends on the niche you operate in as well as your Customer Lifetime Value. 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

SaaStr

FEBRUARY 19, 2019

The promise at the heart of the SaaS business model has always been that by sacrificing relatively large one-time payments, you’d maximize revenue over the long-term lifetime of the customer. In four letters, the promise of the SaaS model is CLTV (Customer Lifetime Value). So what’s the solution?

Customer Success 168

Customer Success Payment Solutions SaaS Payments Scale 168

User Pilot

JANUARY 10, 2022

Tracking the right customer success metrics allows you to respond proactively to customer needs and keep users on the road to success. The right metrics help increase retention and customer lifetime value , maximize upselling opportunities, and increase customer loyalty and drive word-of-mouth.

Customer Success 105

Customer Success SaaS Payments Customer Lifetime Value SaaS 105

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

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

Valuize Consulting

NOVEMBER 25, 2024

However, to fully unlock its potential, companies must go beyond qualitative insights and bring data into the decision-making process within Customer Success ranks and investments. They help answer key questions: Why is this Customer Success investment being prioritized? What is the business case for the initiative?

Payment Services 52

Payment Services SaaS Payments Customer Success Payments 52

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

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

FEBRUARY 10, 2022

Product adoption occurs when users decide to invest in your product to achieve their goals. Product adoption rate measures both customer satisfaction and growth , giving you an overall idea about the health of your business. Product adoption takes place when your customers discover a new product and start using it with a purpose.

Customer Lifetime Value 98

Customer Lifetime Value SaaS Underperforming Technical Team Software Review 98

Blulogix

NOVEMBER 13, 2024

Margin analysis helps assess whether these discounts lead to increased customer lifetime value or simply erode margins without significant returns. For MSPs and SaaS companies, offering discounts on recurring subscriptions can have a long-term impact on profitability.

Customer Lifetime Value 59

Customer Lifetime Value Compensation Subscription Payment Features 59

User Pilot

MARCH 12, 2024

Customer acquisition cost The Customer Acquisition Cost (CAC) refers to the costs and resources required to acquire a new customer. CAC can help your SaaS company assess a customer’s overall value to your organization. It can also help you calculate the return on investment (ROI) of an acquisition.

Metrics 105

Metrics Scale Customer Lifetime Value Business 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

User Pilot

NOVEMBER 29, 2023

There are 4 main responsibilities that every retention specialist job description should have: Gathering information from customer feedback and complaints and working to resolve them. Developing strategies to reduce churn and increase customer lifetime value. Monitoring and analyzing customer retention through reports.

Retention 105

Retention Customer Lifetime Value Churn Outsourced Development 105