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Churn Rate vs Retention Rate: Formulas, Benchmarks and Ways to Improve

User Pilot

Customer retention is the percentage of customers who made repeat purchases during a given time period. The entire business model of SaaS companies is built around retaining customers for the long run, thus increasing customer lifetime value and monthly recurring revenue.

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Benchmarking and Budgeting Go Hand in Hand

OPEXEngine

In working with hundreds and hundreds of SaaS CFOs over the past 15 years, I’ve noticed that effective and strategic CFOs incorporate accurate benchmarking into the daily business of the company and especially into the budgeting and planning process. . Use Benchmarks At the Start of the Budgeting Process.

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Why Do Investors Care So Much About LTV:CAC?

Andreessen Horowitz

Investors often use 3x LTV:CAC as a rough benchmark of a consumer company’s financial health. If your customer lifetime value (LTV) is 3 or more times your customer acquisition cost (CAC) within 5 years, that means your company has efficient returns on sales and marketing spend.

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What Is a Good Free Trial Conversion Rate in SaaS?

User Pilot

This guide will go over what the free trial conversion rate is, why it’s important to track, how to calculate it, what a good benchmark is, and the factors that influence it! TL;DR The free trial conversion rate is the percentage of free trial users that convert into paid customers at the end of their trial period.

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The top 6 subscription KPIs to measure for growth

ProfitWell

Comparing KPI data against benchmarks highlights whether your company’s performance is improving or not in that area. For example, let’s say you’re measuring how much money you’re spending on acquiring each one of your new customers. KPIs are also useful for establishing internal benchmarks for progress. Forecast Demand.

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Average Customer Retention Rate By Industry & How to Improve Your SaaS Retention Rate

User Pilot

Highest customer retention rate by industry On the opposite end of the spectrum, media companies and professional services have the highest retention rate for any industry, with 84% CRR. The entire SaaS business model is built around retaining customers for the long term. Then, you need to set a benchmark retention rate.

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B2B Customer Journey Touchpoints CS Teams Need To Plan For

Totango

Reminding customers to renew subscriptions. These are some of the most outstanding touchpoints relevant to SaaS business models. B2B Customer Journey Touchpoint Mediums. Touchpoints may involve any medium you use to interact with customers, including: Search engine marketing. Making upsell offers.

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