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Guide on Customer Lifetime Value (LTV) for SaaS Businesses

Subscription Flow

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.

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The appliance of science: Mark Roberge’s formula for scaling

Intercom, Inc.

Applying data and science to scaling has become easier because of the shift that’s happened in the software industry over the past 15 years, from outside sales to inside sales. A data-driven framework for scaling. Mark’s latest ebook, The Science of Scaling , outlines a precise framework for success. Next comes go-to-market fit.

Scale 226
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CLTV: Important. But Not the North Star Metric It Used To Be.

SaaStr

Q: What is customer lifetime value, and why is it important? In the early days of SaaS, we all focused on Customer Lifetime Value. You do need to know how long your customers last. You do need to know how long your customers last. So we used their core metrics like “Churn” and “Lifetime value”.

Metrics 291
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What is Customer Lifetime Value and How to Calculate It

ChurnZero

Customer Lifetime Value (CLTV) , also known as, Lifetime Value (LTV), is the gross profit a customer delivers to your business in their lifetime. It is the amount of revenue your business will make from a customer over their average lifetime as a customer.

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Startup Metrics

TechEmpower SaaS

One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? Customer Lifetime Value (CLV) How much money will your business generate from each converted customer? Don’t worry about scaling just yet. How will you convert them?

Metrics 390
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The New Software GTM Playbook

Tom Tunguz

Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention. The new software GTM playbook has yet to be written. But the companies who figure it out will become the next wave of massive businesses.

Software 304
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How to Increase Customer Lifetime Value with Personalized Retention Marketing?

User Pilot

Personalization makes customers feel happy and recognized as valued customers. Because personalization strategies lead to a more satisfying customer experience, they also: Improve customer lifetime value. Customers are more likely to stick with a company after receiving excellent customer service.