Remove Acquisition Remove Customer Lifetime Value Remove Headcount Remove Scaling
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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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1 Key SaaS Sales Metric to Fine-Tune Sales Productivity

InsightSquared

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC).

Scale 102
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Why a CRM is not sufficient for your Customer Success function?

CustomerSuccessBox

In the glorious business of the SaaS space, one underlying truth that determines the growth and scaling of the business is that it takes several months to recover the Customer Acquisition Cost (CAC) and get to the profitable zone at a unit economics level. However, only one of them performs tasks at scale.

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Your Product Sells Itself. Now Hire Sales.

OpenView Labs

Sales now accounts for about 7% of the company’s headcount–a similar share of their workforce as marketing or product management. We call them enterprise advocates and it’s something that we began to grow about four years ago, with a focus on really complex large customers.”. The rest of their headcount only grew by 31%.

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Why a Low Customer Acquisition Cost (CAC) Isn’t Always a Good Benchmark

OPEXEngine

Customer Acquisition Cost (CAC) is a key SaaS metric that accounts for how much it costs your company to procure each new customer. What it tells you about your company will depend on your goals, your business model and needs, and your customer lifecycle. However, this metric calls for discerning judgment.

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We Haven’t Hit Peak SaaS

Hitenism

In 2014, Mixpanel’s Series B pitch deck spelled out the company’s expansion plans over the next two years: 3x sales headcount and rapidly race towards distribution. Double headcount every 6-9 months. Use venture capital to scale an inside sales team and dial for dollars to gain market share.

Scale 147
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It’s a Rough Time to Be a Startup – Here’s What You Can Do About It

OpenView Labs

Those on the front lines know that more competition means greater saturation of traditional marketing and sales channels, increasing customer acquisition costs (CAC). In fact, the cost of acquiring a customer has gone up by 65% in the past five years, according to a ProfitWell survey of 800 companies. They aren’t alone.

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