User Pilot

AUGUST 9, 2023

Wondering how to calculate customer retention rate and why? In this article, we’ll cover how to calculate retention rate, other key customer retention metrics, and how you can improve your retention rates. The industry average falls between 70% and 80%. How to calculate customer retention rate?

Retention 94

Retention Customer Lifetime Value Churn Metrics 94

User Pilot

JULY 13, 2023

Different types of company growth include: Industry growth assesses your company’s performance by benchmarking against the industry average. Compound annual growth rates (CAGR) calculate the average annual growth of a company over a period. Here, n represents the number of years considered for the growth calculation.

Metrics 89

Metrics Customer Lifetime Value Benchmarks Churn 89

Clouded Judgement

FEBRUARY 23, 2024

It’s pretty clear which point in time was the “growth at all costs” period! As you can see, on average full year 2024 consensus estimates are not going up after the Q4 calls. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Top 5 Median: 19.6x

Cloud 152

Cloud Metrics Subscription Payment Features 152

Stax

MARCH 12, 2024

DSO, or Days Sales Outstanding, is a formula and KPI for small and medium-sized businesses to measure the average number of days it takes to collect payments from customers. In this blog, we’re going to explore the importance of DSO, how to calculate it, and strategies to help improve DSO to create a healthier business. x 30 = 68.4

Payment Features 88

Payment Features Payment Methods Payment Services Stax 88

User Pilot

OCTOBER 5, 2023

Our guide explores: What exactly CAC payback is Why you should be tracking it How to calculate the CAC payback period for your SaaS What other metrics you need to track How to reduce your CAC payback period We also look at how Userpilot can help you do the job. First, calculating the actual customer acquisition costs is quite challenging.

SaaS Payments 96

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 96

User Pilot

AUGUST 10, 2023

Are you trying to find your business’s average customer acquisition cost? And the customer acquisition cost (CAC) shows you how effective you’re with your sales and marketing efforts to acquire new customers. The average CAC varies across industries. What is customer acquisition cost (CAC)?

Acquisition 74

Acquisition Benchmarks Customer Lifetime Value B2B 74

User Pilot

JANUARY 19, 2023

Looking to improve your retention rates by reducing customer retention costs? This is why it’s critical to understand retention costs and how to reduce them. In this article, we’ll explore customer retention costs. You will also learn how to calculate and reduce them so you can drive more profit for your SaaS business.

Retention 92

Retention Customer Lifetime Value Onboarding Acquisition 92

Baremetrics

NOVEMBER 2, 2021

Use Baremetrics to calculate LTV for Shopify Partner Apps How do you calculate LTV for Shopify Partner Apps? Shopify Partner Apps are third party companies that sell their services or Apps to Shopify store owners. This article is for Shopify Partner App developers and how to calculate LTV for your subscription customers.

Payment Solutions 105

Payment Solutions Payment Methods Payments SaaS Payments 105

FastSpring

SEPTEMBER 2, 2020

When you’re trying to decide how to scale your business and how to calculate profits, there are tons of metrics out there you can use. Depending on what calculation you use, LTV can paint an honest picture of whether your customers are spending and staying long enough to cover acquisition costs and hopefully—make you a profit.

Scale 135

Scale Payment Methods Payments SaaS Payments 135

Clouded Judgement

FEBRUARY 24, 2023

Retailers are seeing pressure from rising input costs (from suppliers like Procter and Gamble / Unilever), as well as rising wages. In the 10 years leading up to 2020 the median multiple was ~7.8x, and the average 10Y was ~2.3%. It makes sense the median multiple today is lower than the 2010-2020 average given the difference in rates.

Cloud 130

Cloud Subscription Payment Features Revenue 130

User Pilot

JULY 27, 2023

TL;DR SaaS, or “Software as a Service,” is a business model that delivers centrally hosted software to subscribers over the internet. Average salary: $196,172/yr. Average salary: $191,286/yr. Average salary: $192,383/yr. Average salary: $151,254/yr. Average salary: $111,208/yr.

Sales Hiring 94

Sales Hiring SaaS Payments Sales Recruiting CTO Hire 94

Baremetrics

DECEMBER 7, 2023

Benefits of using Expense Categories in SaaS The main expense categories for any SaaS company are: Cost of Revenue Research & Development Sales & Marketing General & Admin These four categories are the standard for describing costs and expenses of any SaaS company from Salesforce to Zoom to your startup.

Merchant Services 90

Merchant Services Startup DevOps as a Service SaaS 90

SaaStr

SEPTEMBER 15, 2020

This lack of compliance with economic nexus laws could cost you in back taxes and penalties. . If you have to manually calculate, collect, and report sales tax for your SaaS product, you not only risk collecting the wrong amount of state and local sales tax, but you also risk making mistakes on your sales tax returns.

Payment Services 269

Payment Services compliance SaaS Payments Scale 269

Baremetrics

OCTOBER 26, 2021

Use Baremetrics to calculate CAC for Shopify Partner Apps CAC for Shopify Partner Apps How do you calculate CAC for Shopify Partner Apps? Baremetrics can calculate CAC for Shopify Partner Apps Why do you need to calculate CAC for your Shopify Partner Apps? CAC represents the total cost to onboard a new paying customer.

Payment Solutions 98

Payment Solutions Payments Payment Methods SaaS Payments 98

User Pilot

AUGUST 6, 2023

How do you calculate marketing automation ROI? Costs associated with marketing automation include tool subscriptions , data migration, and staff training. To calculate your marketing ROI, divide the total net returns by the total costs. The ROI of marketing automation is on average $5.44 for every $ invested.

Marketing 86

Marketing SaaS Social Media Onboarding 86

Clouded Judgement

DECEMBER 21, 2023

The consensus estimates are the average of all the individual analysts’ projections. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. In fact, this is quite normal.

Cloud 177

Cloud Software Benchmarks Retention 177

User Pilot

NOVEMBER 24, 2023

You calculate customer acquisition cost by dividing the total acquisition cost by the number of new customers. You calculate customer retention costs by dividing the total retention cost by the number of customers retained. Customer retention is more of a long-term strategy compared to acquisition.

Acquisition 91

Acquisition Retention Customer Lifetime Value Churn 91

Baremetrics

OCTOBER 8, 2021

The lifetime value of a customer is just what it says—the total amount of revenue earned by the average customer during the duration of their contract. Thankfully, when it comes to calculating LTV for Stripe customers, along with all of the related metrics , Baremetrics excels. Why is it difficult to calculate LTV for Stripe customers?

Payment Services 94

Payment Services Payments SaaS Payments Payment Features 94

Baremetrics

SEPTEMBER 26, 2021

Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? Most SaaS companies keep track of their customer acquisition cost (CAC) and customer lifetime value (LTV), but how about your CAC:LTV ratio or months to recover CAC? Average revenue per user (ARPU) iii. Table of Contents.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Baremetrics

OCTOBER 8, 2021

One of the most important metrics is customer acquisition cost (CAC). CAC represents the total cost to onboard a new paying customer. It can include everything from your sales and marketing expenses per new customer to the per customer cost of running your free trial. However, calculating CAC directly in Stripe can be difficult.

Payment Services 96

Payment Services Payment Methods Payments SaaS Payments 96

User Pilot

JANUARY 19, 2023

Key quantitative metrics that you should measure are: Trial-to-paid conversion rate , Product adoption rate, Feature usage rate, Customer acquisition cost, Retention rate , Customer health score , Churn rate , Customer lifetime value , Gross profit margin & Monthly recurring revenue. Customer acquisition cost (CAC).

Metrics 94

Metrics Customer Lifetime Value Retention Onboarding 94

Baremetrics

NOVEMBER 2, 2021

Average revenue per user (ARPU): How much do you earn per customer on average per period? Customer lifetime value (LTV): How much value does your average customer bring during the lifetime of their contract? Use Baremetrics to calculate business metrics for Shopify Apps 6. Calculating your MRR is pretty simple on paper.

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

Clouded Judgement

OCTOBER 27, 2023

Software multiples today are at the same place they were (on average) in May when the 10Y was at 3.4%. Azure also benefits significantly from their AI services. And while we still saw elevated cost optimization relative to a year ago, it's continued to attenuate as more companies transition to deploying net new workloads.”

Cost optimization & reporting 152

Cost optimization & reporting Cloud Azure AWS 152

ChurnZero

JUNE 9, 2023

It can also be calculated by multiplying the monthly recurring revenue ( MRR )—that is the total of contracts that renew monthly—by 12. It is calculated by taking revenue ( excluding expansions) and subtracting revenue churn caused by expirations, cancellations, downgrades, or discounts. Was it a competitive steal?

Finance 98

Finance Metrics Customer Success Headcount 98

Clouded Judgement

APRIL 5, 2024

The high valuation / low dilution sounds good in the moment but there are also hidden costs. Year to date, the average software stock price performance is down 6%. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. The market sold off after this. Top 5 Median: 17.4x

Cloud 161

Cloud Scale Pricing Revenue 161

FastSpring

APRIL 18, 2024

Fortunately, there are some very helpful tools and services available to assist and advise you as your business grows beyond its domestic borders. Further, you can choose which of our two pricing modes you want FastSpring to use to calculate and display pricing with. Your choice.

Payment Methods 78

Payment Methods Payments SaaS Payments Merchant Services 78

Baremetrics

SEPTEMBER 30, 2021

Cost plus pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and profit. The basic idea behind cost plus pricing is to base your prices on the cost of production plus your desired profit margin. Advantages of cost plus pricing i. Contract cost overruns iii.

Pricing 96

Pricing Outsourced Development Systems Review Strategy 96

Intercom, Inc.

JANUARY 21, 2020

A quick Google search and a calculator tells me that’s an average 25 mobile apps for every person on Earth. Lots of social stuff, banking, travel, local services, fitness, cooking, more than a few games, even apps made by governments. Calculating the results. Calculating the results. That ranges from just 3.5%

Mobile 291

Mobile PayPal Social Media Underperforming Technical Team 291

Stax

JANUARY 31, 2024

They cover the costs of managing the network, ensuring security, and facilitating the transfer of funds between banks. The Visa interchange fee increases occurring in both October 2023 and April 2024 are expected to cost an additional $502M in yearly fees for all relevant merchants. The fee is 0.0075%.

Payment Services 88

Payment Services Merchant Services Payment Methods Accept Credit Card Payments 88

Baremetrics

OCTOBER 1, 2021

If we add in the opportunity cost, i.e. the amount of money you could earn on that money, then the discount rate grows even higher. Cost of capital vs. discount rate Discount rate Cost of capital Why do we discount? While discount rate and the cost of capital are similar and related concepts, there are some key differences.

SaaS Payments 96

SaaS Payments Payments SaaS Payment Services 96

Clouded Judgement

APRIL 12, 2023

The consensus estimates are the average of all the individual analysts’ projections. The formula to calculate this is: (Q4 ’22 revenue) / (Q4 ’21 revenue) - 1. I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. In fact, this is quite normal.

Cloud 161

Cloud Software Benchmarks Retention 161

User Pilot

NOVEMBER 14, 2023

Customer lifetime value is calculated by multiplying customer value (which is your average purchase value x purchase frequency rate) with the average customer lifespan. Implement an in-app resource center to provide self-service support. How to calculate customer lifetime value? Why is it important to increase LTV?

Customer Lifetime Value 81

Customer Lifetime Value SaaS Onboarding Retention 81

ChurnZero

JULY 14, 2021

It is the amount of revenue your business will make from a customer over their average lifetime as a customer. How Do You Calculate Customer Lifetime Value? To calculate customer lifetime value, you need to know your average revenue per unit/user, your gross margin, and your average customer lifetime length.

Customer Lifetime Value 98

Customer Lifetime Value Scale Headcount Churn 98

User Pilot

OCTOBER 4, 2023

Net monthly recurring revenue (MRR) growth enables you to calculate the change in your company’s recurring revenue on a month-to-month basis. Net MRR growth rate helps calculate the variation across these factors, so you end up with a clear indicator of your company’s growth. How to calculate MRR growth rate?

Metrics 88

Metrics Customer Lifetime Value Churn Retention 88

User Pilot

OCTOBER 24, 2023

Usage-based pricing could use tiers, units, volumes, or impact as its basis for subscription cost. Usage-based pricing makes your product easier to adopt since new customers can get started at minimal cost and then expand their usage as their business grows over time. Higher customer satisfaction. Better retention rates.

Pricing 94

Pricing Payment Solutions SaaS Payments Payments 94

Clouded Judgement

JUNE 20, 2023

While the median software multiple is ~25% below it’s long term average, when we growth adjust the multiples (graph below) we’re actually sitting right at historical highs (excluding the 2020-2021 period). The consensus estimates are the average of all the individual analysts’ projections.

Cloud 161

Cloud Software Benchmarks Scale 161

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Here’s how to calculate both kinds of costs and why retention should form part of a profitable business strategy. Calculating the Cost of Customer Acquisition. The result is your average CAC.

Acquisition 63

Acquisition Retention Social Media Advertising 63