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5 Interesting Learnings from Xero. As It Crosses $650m in ARR.

SaaStr

Aim for that at least in your SMB segment if you can, and if you can provide at least as much value as Xero. Customer Lifetime Value is 81 months, from SMB That’s impressive. That means an effective 81 month customer lifetime value from SMBs. This is a critical metric. and LTV is $2,398.

SMB 223
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How to Categorize Expenses in a SaaS Startup v2.0

Baremetrics

You’ll need Cost of Revenue to calculate your Gross Margin, which in turn you need to calculate Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC) Payback Time and to understand your company’s unit economics in general.

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20 quick insights on Customer Success and SaaS metrics with Dave Kellogg

ChurnZero

Following the webinar, we invited Dave to give his rapid-fire takes on tracking the retention of auto-renew customers, calculating customer lifetime value as a startup, comping CSMs on expansion, determining the importance of measuring time to value, and much more. tech ops, AWS, technical support).

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How to categorize expenses in a SaaS startup

Baremetrics

You’ll need this to calculate your Gross Margin , which further enables you to calculate Customer Lifetime Value and other key SaaS metrics. This is where you record all of the costs that go to providing your service, such as hosting and customer support payroll. Next, we set up your Sales & Marketing (S&M) costs.

Startup 81
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Consumption-based pricing models: transition guidance for CFOs

OPEXEngine

Additionally, it is a flexible model that allows customers to buy only what they need (i.e., There are many vendor benefits, too — it is easier to sell and it embodies a customer success solution orientation that drives high customer lifetime value and revenue. Four pricing models.

Pricing 52
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Product Analysis in SaaS: Types, Steps, and Tools

User Pilot

Customer Retention Rate is the percentage of users who continue using the product. It is an indication of the value that your product delivers over a period of time. Customer Lifetime Value (CLV or LTV) is the average revenue a customer brings to the organization until they leave.

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A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

Average Revenue per Customer. Customer Lifetime Value (LTV). Customer Acquisition Cost (CAC). & That’s typically the AWS model, depending on how much space you take, service space, you will pay more. MRR, obviously. Or maybe ARR, depending on your model. Something we all hate, but still important.