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

User Pilot

NOVEMBER 14, 2024

What if you could boost revenue without having to invest a small fortune in new customer acquisition? While it may sound too good to be true, the reality is that you can achieve this by implementing an effective customer expansion strategy. Customer expansion drives recurring revenue and long-term growth.

Strategy 105

Strategy Payment Solutions Payments Customer Lifetime Value 105

User Pilot

JANUARY 9, 2023

Customer retention marketing is any marketing that aims to keep both new and current customers happy. Personalization strategies help improve customer value and boost loyal customers. They’re also more cost-effective than customer acquisition strategies. Save resources on customer acquisition.

Customer Lifetime Value 98

Customer Lifetime Value Retention Marketing Scale 98

Neil Patel

MARCH 2, 2021

Customer acquisition cost (CAC) is a metric that has been growing with the emergence of Internet companies and web-based advertising campaigns that can be tracked. Today, many web-based companies can engage in highly targeted campaigns and track consumers as they progress from interested leads to long-lasting loyal customers.

Acquisition 145

Acquisition Metrics Customer Lifetime Value Advertising 145

User Pilot

JULY 22, 2023

Customer acquisition cost vs lifetime value: which one should you prioritize? Let’s dive in to find out and also discuss how you can improve both your customer acquisition cost and lifetime value. To measure the LTV:CAC ratio, divide the lifetime value by the customer acquisition cost.

Acquisition 94

Acquisition Customer Lifetime Value Onboarding Retention 94

Incredo

OCTOBER 8, 2019

Just look at customer acquisition vs retention statistics. When you acquire a new customer, it costs you 5x more than if you retained your existing customer. ncreases your customer lifetime value 3. The post 8 Smart Tactics For Your SaaS Customer Acquisition Strategy appeared first on Incredo.

Acquisition 148

Acquisition Strategy Technical Review SaaS 148

User Pilot

AUGUST 30, 2023

With many customer acquisition channels available, how do you choose the right one? Read on to find the best acquisition channels for your SaaS and how to create winning customer acquisition strategies that drive growth. Of course, it’s not a walk in the park.

Acquisition 105

Acquisition Strategy Social Media Customer Lifetime Value 105

User Pilot

AUGUST 31, 2023

What is customer acquisition for SaaS, and how can you leverage it to drive sustainable growth ? The purpose of customer acquisition is to expand and make more revenue. Customer acquisition funnel stages in SaaS are Awareness, Consideration, Evaluation, Conversion. What is customer acquisition?

Acquisition 110

Acquisition SaaS Payments Payment Methods Metrics 110

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 24, 2023

Which one is better, customer acquisition vs retention? This article will examine customer acquisition and retention and determine which one you should focus on. TL;DR Customer acquisition attracts and converts new customers through marketing and sales efforts to expand the customer base and drive revenue growth.

Acquisition 105

Acquisition Retention Customer Lifetime Value Churn 105

Intercom, Inc.

APRIL 14, 2020

As Des points out, the temptation to focus on customer acquisition can distract from the importance of focusing on retention, a focus that needs to start from onboarding and continue coherently from there. But improving your retention rate by 1% extends customer lifetime value and increases your bottom line by around 7%.

Retention 245

Retention Customer Lifetime Value Churn Acquisition 245

User Pilot

JULY 30, 2023

Customer retention vs acquisition cost: Which metric matters more? While it’s important to acquire new customers for growth, retaining existing customers is imperative to ensure long-term success. So let’s see when you should prioritize one metric over the other and how you can boost your customer retention rates.

Acquisition 98

Acquisition Retention Customer Lifetime Value User Experience 98

User Pilot

AUGUST 10, 2023

Are you trying to find your business’s average customer acquisition cost? In today’s competitive landscape, acquiring new customers is essential to any successful business’s or product’s growth. You can calculate CAC by dividing total expenses by the number of new customers acquired in a specific period.

Acquisition 95

Acquisition Benchmarks Customer Lifetime Value B2B 95

Stax

JUNE 3, 2025

Prioritize customer success, not just customer acquisition While getting new users in the door is important, retention is what drives predictable revenue and strong unit economics. SaaS companies that invest in onboarding, customer education, and proactive support tend to see higher engagement and lower churn.

Payment Services 88

Payment Services DevOps as a Service SaaS Payments Payments 88

User Pilot

MARCH 6, 2023

What’s product-led acquisition? TL;DR Product-led acquisition (PLA) is an organic way of growing a customer base through recommendations from existing customers. Word-of-mouth (WOM) marketing is said to be the most cost-effective acquisition strategy. What is product-led acquisition?

Scale 98

Scale Acquisition Scaling Customer Lifetime Value 98

User Pilot

JANUARY 8, 2024

With the right customer acquisition strategies, you can convert potential customers to paying users and set the stage for turning them into long-term loyal users. In-app strategies for converting free or trial users to paying customers. In-app strategies for converting free or trial users to paying customers.

Acquisition 105

Acquisition Strategy Social Media Underperforming Technical Team 105

SaaStr

JULY 30, 2024

PLG ensures your product is doing the work for you in terms of customer advocacy, acquisition, and retention. Benefits of Scaling a PLG Motion As you get to know your users, they will provide and measure your product’s value. Lower customer acquisition costs. How do you scale PLG? How Do You Monetize?

Underperforming Technical Team 276

Underperforming Technical Team Enterprise Scale Payments 276

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

The Angel VC

OCTOBER 5, 2014

Let's assume that your CLTV (customer lifetime value) is $2,700 (assuming an average customer lifetime of three years and a gross margin of 90%) and that you want your CLTV to be 4x your CACs (customer acquisition costs). In that case you can spend $675 to acquire a customer.

Scale 280

Scale Business Customer Lifetime Value Enterprise 280

Intercom, Inc.

MARCH 20, 2018

It increases monetization, as the more often users return to your product, the more opportunities you’ll have to increase their lifetime value. And it increases acquisition, as the more you increase customer lifetime value, the more money there will be available to acquire more customers.

Churn 174

Churn Retention Strategy Customer Lifetime Value 174

Intercom, Inc.

AUGUST 23, 2022

That’s why companies should look to support – and retain – the customers they have. Shifting focus to customer retention can actually be twice as powerful as customer acquisition. While a 1% increase in acquisition might boost your bottom line by about 3% , a 1% decrease in churn can boost it by 7% !

Customer Support 212

Customer Support Retention Headcount Customer Lifetime Value 212

ChurnZero

MAY 23, 2025

Customer success, when tied to revenue outcomes, is a strategic growth lever. The CS org holds the keys to driving net revenue retention (NRR), influencing customer lifetime value (LTV), improving your CAC:LTV ratio, and ultimately showing your board that growth isnt just coming from new logos – its compounding from within your base.

Customer Success 52

Customer Success Metrics Revenue Scale 52

Incredo

JUNE 25, 2019

Some experts claim that it’s extremely harmful to the company’s ROI and increases customer acquisition cost (CAC). If I don’t like, I have nothing to lose ”) and start nurturing them into paying customers. Freemium plans decrease customer acquisition cost (CAC) as you spend fewer resources to attract people to free access.

SaaS 236

SaaS Pricing Software Review Acquisition 236

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

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

You aim to identify whats important to the customer, set expectations, and measure success. The right onboarding strategy means more than just getting a customer using your product. But how do you know if your onboarding tactics really work? If your training and targets are falling short or too ambitious?

Onboarding 86

Onboarding Strategy Technical Review Customer Lifetime Value 86

SaaStr

MARCH 28, 2025

But for us, six quarters is the target because customers are expected to last longer than four years.” ” Despite having 475,000 customers, this represents only about 1.2% It focuses on workflow, budgeting, and other essential aspects for customers.”

SMB 130

SMB Payments Payment Services SaaS Payments 130

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 227

Scale Scaling Sales Recruiting Sales Hiring 227

User Pilot

MAY 30, 2025

Monitoring all three lets you detect when growth slows down, compare different user acquisition channels, and validate feature launches. Customer acquisition cost Customer acquisition cost (CAC) is the average money you spend to bring in one new customer. Customer acquisition cost formula.

Mobile 82

Mobile Metrics Customer Lifetime Value Software Review 82

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

User Pilot

SEPTEMBER 4, 2024

Total customers acquired vs. customer acquisition cost While acquiring customers is essential, the total number alone doesn’t tell you if you’re growing profitably. Customer acquisition cost (CAC). This actionable metric shows how much you’re spending to acquire each new customer.

Product Marketing 105

Product Marketing Metrics Customer Lifetime Value Social Media 105

User Pilot

NOVEMBER 28, 2023

Represents the speed at which your customer base increases over a specific period. Customer acquisition cost. The total expense of bringing a new customer on board. Customer churn rate. Customer lifetime value. Then, divide that number by the total number of users. Churn rate formula.

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. Increase new customer acquisition by incentivizing existing customers to refer others. The benefits of driving customer growth The primary benefit of customer growth is the increase in revenue.

Customer Lifetime Value 103

Customer Lifetime Value Retention Churn Acquisition 103

User Pilot

JANUARY 28, 2024

11 key metrics to track for evaluating performance : Customer Acquisition Cost (CAC) is an indication of the efficiency of your marketing and sales efforts and is crucial for product profitability and scalability. Customer Lifetime Value (CLV) indicates long-term customer revenue potential, guiding retention and expansion strategies.

Metrics 105

Metrics Customer Lifetime Value Business SaaS 105

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

MARCH 30, 2025

6 Acquisition App downloads Track initial user acquisition and measure marketing campaign effectiveness. 7 Acquisition Customer acquisition cost Understand the cost of acquiring each user and optimize marketing spending. High churn hinders growth, as new customer acquisition is offset by customer loss.

Benchmarks 93

Benchmarks Mobile Metrics Software Review 93

User Pilot

OCTOBER 24, 2023

These categories include revenue metrics, engagement metrics , and customer satisfaction metrics. Revenue growth metrics include customer acquisition cost (CAC), customer lifetime value (LTV), monthly recurring revenue (MRR), and average revenue per customer (ARPU).

Metrics 103

Metrics Customer Lifetime Value Churn Acquisition 103