Chaotic Flow

JUNE 11, 2013

The good news is that SaaS growth can be very smooth and predictable, because of the SaaS recurring revenue subscription model. Moreover, you will begin to hit the SaaS growth ceiling in exactly one average customer lifetime of 5 years, equal to 1 divided by your 20% churn rate. Alternatively….

Customer Lifetime Value 165

Customer Lifetime Value Scale SaaS Acquisition 165

Baremetrics

SEPTEMBER 2, 2021

Most SaaS businesses adopt a subscription-based model supported by a recurring payment system. Setting up a recurring payment system can be complicated and requires the right tools to measure, manage, and review payments regularly. What is Recurring Billing? How Does Recurring Billing Work?

Payment Services 89

Payment Services Merchant Services Payment Features Payments 89

Subscription Flow

MAY 22, 2024

First impressions are rarely the last impressions, but they can prove to be just that for your company if you do not strategize a high customer lifetime value (LTV) for SaaS businesses. When customers consistently return to make purchases, it is usually a positive indication that your company is doing well.

Customer Lifetime Value 52

Customer Lifetime Value SaaS Payments Payment Services Technical Advisors 52

The Angel VC

OCTOBER 5, 2014

In the x-axis you can see how many customers you need, for a given ARPA, to get to $100 million in annual revenues. Both axes use a logarithmic scale. Most SaaS products aren't inherently viral, there usually isn't enough inventory to make paid advertising work at scale, and cold calling usually doesn't work at this ARPA level.

Scale 280

Scale Business Customer Lifetime Value Enterprise 280

Subscription Flow

MAY 30, 2024

Did you know the subscription economy is touted to reach $1.5 As a business that provides software as a service, you will not only need to jump on this bandwagon, but more importantly, you will need the right set of subscription management tools to stay on it to keep reaping the profits of this booming industry. trillion by 2025 ?

Merchant Services 97

Merchant Services Payment Solutions Payment Services SaaS Payments 97

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. To help you make an informed decision, we’re exploring the subscriptions trends in today’s market.

SaaS Payments 99

SaaS Payments Payment Methods Payment Solutions Payments 99

Intercom, Inc.

NOVEMBER 7, 2018

Pure customer acquisition metrics are popular, but dangerously inexact tools for calibrating and scaling your company growth. If you want to grow in a scalable and profitable way, then you have to look beyond customer acquisition and get smart with: Customer Acquisition Cost. Lifetime Value. events).

Acquisition 202

Acquisition Scale Advertising Customer Lifetime Value 202

Subscription Flow

NOVEMBER 20, 2023

Customers can pay for goods and services according to their consumption ( pay-as-you-go ), scale their service usage up or down in accordance with business needs, and have their subscriptions automatically renewed thanks to subscription billing and revenue management.

Payments 59

Payments Payment Features Payment Services Subscription 59

The Angel VC

NOVEMBER 29, 2013

Note that the x-axis is not a true-to-scale representation of time elapsed. For a true-to-scale representation I would have to add much more space between the Series A and the Series B and between the Series B and the Series C. Therefore you should also consider regular Net Promoter Score (NPS) surveys. 3% per month.

Scale 190

Scale Startup SaaS Customer Lifetime Value 190

FastSpring

JUNE 28, 2019

When companies look at strategies to scale their business there’s almost always a prevalent focus on customer acquisition. Businesses are always on the lookout for ways to expand their user base, attract new customers, and generate new leads. Customers may choose to opt out of a subscription service.

Churn 100

Churn Payment Services SaaS Payments Payment Features 100

User Pilot

MARCH 6, 2023

Customer Acquisition Cost, Product Adoption Rate , and Customer Lifetime Value are some of the key metrics product managers can use to evaluate the effectiveness of their product-led strategy. That’s because it’s adopted users that pay subscription fees and upgrade to higher plans.

Scale 98

Scale Acquisition Scaling Customer Lifetime Value 98

Baremetrics

JULY 22, 2021

This is why PayPal users love Baremetrics, the ultimate business analytics solution that helps SaaS and subscription businesses monitor and understand subscription data. Recurring Payments Profile Report s are accessible to merchants or payment processing partners who have already integrated the Recurring Payments Product.

PayPal 98

PayPal Merchant Services Payments SaaS Payments 98

Totango

NOVEMBER 5, 2021

What do you do when you realize that 95 percent of your customer base is tech-touch and you don’t have the manpower to properly engage with and measure this group? Specifically for purposes such as subscription renewals, it is ideal to track down the correct person. Well, if you’re Aruba, you go digital. Try Totango for free today! .

Scale 115

Scale Engagement Scaling Strategy 115

User Pilot

AUGUST 6, 2024

Track and optimize metrics like churn rate , CSAT score , customer lifetime value, active users, and retention rate. Revenue : The goal here is to convert engaged users into paying or higher-tiered customers. This involves upselling , cross-selling , and ensuring continuous subscription renewals.

SaaS Payments 103

SaaS Payments Metrics Scale Marketing 103

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

SaaSOptics

FEBRUARY 13, 2022

Based on a 2019 survey, Gartner forecasts that eighty-four percent of new software will be delivered as SaaS , and this percentage is expected to increase as existing providers transition to a subscription-based model. The main difference between accounting for a subscription vs. a traditional business is the method used.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

SaaStr

MARCH 28, 2025

billion in revenue 475,000 customers across all platforms (Bill, Divvy, Invoice to Go) 250,000 customers on the core Bill platform A payment network of 7.1 But for us, six quarters is the target because customers are expected to last longer than four years.” From Zero to $1.4

SMB 130

SMB Payments Payment Services SaaS Payments 130

The Angel VC

SEPTEMBER 16, 2013

For all the differences, though, the goal is always to create a scalable process which allows you to acquire customers for a small fraction of their CLTV. As a rule of thumb, you should aspire a payback time of 6-9 months, meaning that you spend 6-9 months' worth of subscription revenue to acquire a customer.

Scale 153

Scale Sales Hiring Startup Sales 153

Baremetrics

APRIL 13, 2020

Being a Subscription Video On Demand (SVoD) service, subscribers are the lifeblood of our business. Therefore, any sharp spike in churn (cancelled subscriptions) can be catastrophic to us. Within this, we were able to pinpoint the three biggest metrics that we needed to monitor when dealing with customer churn.

Subscription 99

Subscription Payment Features Data Marketing 99

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Churn is the make or break of your subscription business. Churn is defined as the moment when a subscription ends and renewal does not happen, or when a customer cancels. Customer LTV. Churn rate. Trial conversion rate.

Subscription 85

Subscription Payment Features Metrics Business 85

User Pilot

SEPTEMBER 21, 2023

How tracking and analyzing behavioral data helps SaaS Understanding user behavioral data can help you: Improve trial-to-paid conversion rate : By analyzing customer behavior during the trial period , you can pinpoint actions that lead to conversions. It’s a problem if users are clicking the feature but not using it to create invoices.

Payment Features 105

Payment Features Customer Lifetime Value User Experience Churn 105

Stax

APRIL 17, 2025

For SaaS companies looking to scale, upselling is one of the most effectiveand often underutilizedrevenue levers. Instead of pouring resources solely into acquiring new customers, smart SaaS businesses focus on increasing revenue from existing customers by guiding them to higher tiers, unlocking premium features, and expanding their usage.

Payments 88

Payments Merchant Services SaaS Payments Payment Services 88

SaaStr

APRIL 30, 2022

Average Revenue per Customer. Customer Lifetime Value (LTV). Customer Acquisition Cost (CAC). & So growth of the kind of subscription, eCommerce industry has been over 100% year on year for the past five years, according to McKinsey. Which is basically scaled marketing and things like that.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

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 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

FastSpring

JULY 16, 2019

Since SaaS-friendly billing, also known as recurring billing , is designed specifically for companies who sell online services with a subscription model, it offers many advantages over a typical payment system. Keep reading to learn why implementing recurring billing is the right strategy for scaling your SaaS business.

Payment Methods 97

Payment Methods Payments SaaS Payments Payment Services 97

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

Baremetrics

AUGUST 23, 2021

It acts as a product launch blueprint for your business, enabling you to reach customers and sell your product more effectively. Leading SaaS and subscription businesses rely on Baremetrics to track the success of product launches, essential business metrics, and more. SaaS businesses rely on recurring revenue.

Strategy 104

Strategy Scale Payment Features Software Review 104

User Pilot

JANUARY 28, 2024

Monthly Recurring Revenue (MRR) tracks predictable monthly revenue, essential for financial health and growth forecasting. Customer Lifetime Value (CLV) indicates long-term customer revenue potential, guiding retention and expansion strategies. Product performance metrics: Time to Value.

Metrics 105

Metrics Customer Lifetime Value Business SaaS 105

Chaotic Flow

OCTOBER 8, 2013

This is the fifth and final post in a series that explores SaaS marketing strategies that drive growth throughout the customer lifecycle using the three fundamental SaaS growth levers: customer acquisition, customer lifetime value and customer network effects.

SaaS Payments 200

SaaS Payments Payment Methods Payments Scale 200

Chart Mogul

JANUARY 9, 2025

A general advice is to bring in Ops before starting to scale sales efforts in a major way. As they scale and run into issues with those initial setups, they bring in Ops to clean up and streamline. For this reason, it can be prudent to set a customer count or logo target. It worksuntil it doesnt.

Scale 52

Scale Sales Hiring Startup Sales Recruiting 52

Totango

NOVEMBER 5, 2021

What do you do when you realize that 95 percent of your customer base is tech-touch and you don’t have the manpower to properly engage with and measure this group? Specifically for purposes such as subscription renewals, it is ideal to track down the correct person. Well, if you’re Aruba, you go digital. Try Totango for free today! .

Scale 91

Scale Engagement Scaling Strategy 91

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. It focuses on the customer’s overall feeling about your brand.

Metrics 104

Metrics Customer Lifetime Value Scale SaaS 104

ChurnZero

OCTOBER 5, 2021

No worries if you weren’t able to attend (or even if you did and are looking for a recap), we have pulled together our top ten Customer Success takeaways from SaaStr Annual 2021 that we wanted to share with you here. Are your compensation plans setting your business up for longer-term success or subscription contraction? saastrannual.

Customer Success 95

Customer Success Scale Customer Lifetime Value Compensation 95

Baremetrics

MARCH 15, 2021

1 Baremetrics 2 Zoho Analytics 3 Sisense 4 Holistics 5 Sprout Social 6 InfoSet 7 What makes Baremetrics Unique 8 Scaling Business Growth with Baremetrics Reporting Tools. Baremetrics Baremetrics is a zero-setup, one-click subscription analytics and insights software suitable for businesses offering subscription products.

SaaS Payments 98

SaaS Payments Payment Methods Payment Solutions Payments 98

User Pilot

MAY 23, 2024

Customer satisfaction score (CSAT). Customer lifetime value (LTV). To collect the data, you use surveys asking customers how satisfied they are with your product on a scale of 1 to 5 or 7. A high NPS indicates strong customer satisfaction and loyalty , leading to positive word-of-mouth and growth.

Retention 105

Retention Customer Lifetime Value Scale Churn 105

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