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A Guide to Customer Retention: Importance, Strategies & Metrics

User Pilot

Customer retention is vital for product success and business profitability. You will also learn how to build a retention strategy, what metrics to track, and 10 bulletproof retention tactics for SaaS companies. TL;DR Customer retention is the ability to keep your customers actively using their products.

Retention 111
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CLTV Isn’t The Whole Story. Don’t Shortchange Second-Order Revenue.

SaaStr

Everyone in SaaS talks about CLTV (or LTV, same thing). The lifetime value of your customer. You can see a great detailed analysis of how to calculate it here. And then, everyone goes on to calculate some a metric telling you how much to spend on Sales and Marketing. Take a look at this chart from Wix.

Revenue 350
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IVP: The Average SaaS Magic Number is 1.2

SaaStr

The “Magic Number” is one of those metrics in SaaS that has always sort of vexxed me. in essence means you need a full year to pay back just your sales and marketing expenses for a new customer. So Magic Number calculations are absolute, but their significance is very context-sensitive. you need capital.

Scale 271
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Focus on the Fundamentals: How to Scale For Profitability with OMERS Growth Equity Managing Director & Head of Growth Equity Mark Shulgan (Video)

SaaStr

As SaaS founders are looking to scale and raise funding, it can be confusing and stressful to navigate in the uncertain market of the past few years. So how can you tell if you’re on the right track? In the SaaS space, revenue growth was the king of metrics for many years, but that has changed. Sign up for free.

Scale 224
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Average Customer Acquisition Cost: Benchmark by Industry and How to Improve It

User Pilot

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. Offering personalized onboarding experiences to reduce the need for additional acquisition efforts.

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The Most Important SaaS Metrics In 2023 with monday.com CEOs and Co-Founders Eran Zinman and Roy Mann, and SaaStr Founder Jason Lemkin

SaaStr

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? How Is CAC Calculated In SaaS? You can read more about real-world ARR examples here.

Metrics 194
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How to Measure Growth of a Company [+ Metrics]

User Pilot

Are you trying to find out how to measure growth of a company? Growth is the lifeblood of any company, and it is paramount for any SaaS company. Measuring a company’s growth helps you understand how much you progressed and where you stand. What is the company’s growth rate?

Metrics 98