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Two SaaS Metrics That Actually Don’t Matter That Much in the Earliest Days: Absolute Churn and Sales Cycles

SaaStr

And I’m going to suggest two that will worry you a lot as you scale — Churn and Sales Cycle — you should track, but not obsess over, until you are well, well past initial traction, that first $1m-$2m ARR. >> Let’s Start with Churn. Absolutely, getting your churn trending downward is important.

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The Ultimate Guide to Software Customer Churn

Stax

The average churn rate for the software industry as a whole is 14%. Thats actually one of the lowest churn rates across all industries. That said, industry experts agree that your SaaS companys goal churn should be below 2%. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.

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Guide on Customer Lifetime Value (LTV) for SaaS Businesses

Subscription Flow

First impressions are rarely the last impressions, but they can prove to be just that for your company if you do not strategize a high customer lifetime value (LTV) for SaaS businesses. Churn is expensive!) But don’t worry, because we have got you covered. There’s a slight difference between the two.)

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CLTV: Important. But Not the North Star Metric It Used To Be.

SaaStr

Q: What is customer lifetime value, and why is it important? In the early days of SaaS, we all focused on Customer Lifetime Value. In B2C and high-churn environments, it’s indeed a critical metric. You do need to know how long your customers last. net churn of 2%-3% a month.

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5 Interesting Learnings from Xero. As It Approaches $1B in ARR.

SaaStr

Churn is 1.1% Most of the companies in this 5 Interesting Learnings Series have had net negative churn from SMBs (e.g., Xero’s SMB churn isn’t zero. Aim for that at least in your Very Small Business segment if you can, and if you can provide at least as much value as Xero. And the U.K. Zoom, PagerDuty, etc.).

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LTV Optimization 101: How To Optimize Customer Lifetime Value and Drive More Revenue?

User Pilot

By making informed decisions with LTV optimization, you can create a cycle of customer loyalty and long-term profitability. TL;DR SaaS Customer lifetime value (LTV) measures the total revenue a customer will bring to a company over time as a user. What is Customer Lifetime Value (LTV) in SaaS?

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

SaaStr

Churn is 1.1% Most of the companies in this 5 Interesting Things Series have had net negative churn from SMBs (e.g., Xero’s SMB churn isn’t zero. Aim for that at least in your SMB segment if you can, and if you can provide at least as much value as Xero. Inclusive of upsells and churn, their ARPU is $29.25

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