The Benefits of Customer Lifetime Value: Why It Matters

Totango

They focus on the big picture: customer lifetime value. If you want your business to last, you need to prioritize customer lifetime value, too. To succeed in today’s customer-centered economy, you can’t simply focus on attracting new customers.

The Benefits of Customer Lifetime Value: Why It Matters

Totango

They focus on the big picture: customer lifetime value. If you want your business to last, you need to prioritize customer lifetime value, too. To succeed in today’s customer-centered economy, you can’t simply focus on attracting new customers.

SaaS Metrics Refresher #5: Customer Lifetime Value

Chart Mogul

Imagine being able to know the total revenue you’ll receive from a single customer on average — that’s the promise of customer lifetime value (LTV). “LTV is a good indicator to segment customers and prospects to plan pursuit, nurture and coverage.

SaaS Marketing | Maximizing Customer Lifetime Value

Chaotic Flow

What’s the stronger driver of SaaS company growth: customer acquisition or customer lifetime value? Rapid, sustainable SaaS growth is equal parts customer acquisition and customer lifetime value. Two Views of Customer Lifetime Value.

How to Calculate Adoption Rate and its Impact on Customer Lifetime Value

Totango

If your customers aren’t using your product, then they’re not really your customers. They may have subscribed, but if they’re not actively engaging with the product, they’ll never see the value of their investment. This critical phase of the customer journey deals with how well a customer integrates your product into their business process and whether they are using the right functionalities to realize lifetime value.

How to Calculate Customer Lifetime Value

Nimble - Sales

The customer lifetime value is a necessary point on the list. If you’ve never heard of it, we’ll tell you everything you need to calculate your potential profit from your loyal customers. What Is the Customer Lifetime Value? […]. The post How to Calculate Customer Lifetime Value appeared first on Nimble Blog. Every business owner needs to pay attention to a number of different things important for the business.

Making customer lifetime value more actionable

Chart Mogul

For businesses with a low customer count or without much historical churn data, the traditional customer lifetime value (LTV) formula can be unpredictable and produce results that fluctuate from one month to the next. SaaS Metrics Refresher #5: Customer Lifetime Value.

Focus Your Board on Your MVC: Most Valuable Customer

InsightSquared

It’s a saying you hear a lot: Your most important customer is the one you already have. One, it’s true: it costs less to keep an existing customer than it does to acquire a new one. Lifetime Value. Instead, Fagnan prefers to focus on lifetime value. .

CLV Accuracy: Are You Overestimating or Underestimating This Key Metric?

Sujan Patel

Customer Lifetime Value, or CLV, is a key metric that represents how much cash the average customer spends during their relationship with a company – or in other words, how much they’re worth to a business. So why is Customer Lifetime Value so important?

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.

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Feature Engineering: A Closer Look, Part 2 [RS Labs]

ReSci

At Retention Science, we want to capture all sorts of variability in customer behavior in order to model behavior such as calculating purchase probability, predicting customer lifetime values, and optimizing which discounts are most appropriate for which customers.

Fine-Tune Your SaaS Business with CLV Metrics

SaaSOptics

Customer lifetime value (CLV) is one of the most critical metrics used to evaluate a SaaS company’s financial health and to predict its future success. With revenue coming in over an extended period of time, the customer lifetime, it changes the way management, investors and potential acquirers determine whether the SaaS business is financially viable.

1 Key SaaS Sales Metric to Fine-Tune Sales Productivity

InsightSquared

Sales is the engine driving SaaS company value. At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC). Customer lifetime value (CLV). Sales is the Growth Engine.

The Most Important Customer Success KPIs You Should Be Tracking

Totango

Customer success initiatives are critical in ensuring your product gives customers the positive outcomes they’re looking for. But how can you tell if your customer success team’s hard work is paying off? Choose Customer Success KPIs Tailored to Your Customers.

Driving SaaS Growth Through The Customer Lifecycle

Chaotic Flow

At any given time, you can calculate the SaaS growth ceiling for your SaaS business with a simple formula: customer acquisition rate divided by percentage churn rate. New customers come in the front door, while old customers leave out the back.

Customer Success and Sales: How They Work Together

Totango

What’s better for your business to focus on: customer success or sales? Customer success is the practice of cultivating deep and lasting relationships with your customers, which can unlock lasting customer lifetime value for your business.

A Peek Into Demandbase’s Data-Driven Field Marketing Approach

InsightSquared

However, advances in technology allow for not only prospects and customers to receive personalized marketing campaigns, but also for marketers to customize their approach to an individual rep, team or region. Pipeline Value per Employee.

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MRR Should Really be Called 'MRRR' Due to GAAP Accounting Rules

SaaSOptics

Because SaaSOptics provides both GAAP-compliant revenue recognition (which includes reportable revenue for recurring and non-recurring revenues) and s ubscription metrics (which include MRR and its many uses in reports like MRR momentum™, cohorts, customer lifetime value, and more), we frequently have the need to clarify for prospects and users that MRR is not reportable revenue. Most people in the SaaS world know MRR stands for "monthly recurring revenue."

SaaS Growth Strategy | A Customer Lifecycle Approach

Chaotic Flow

But within one short customer lifetime, every SaaS CEO startles awake to the fact that the churn monster is always looking over your shoulder. SaaS churn naturally scales with the size of your customer base making it negatively viral.

Using ABM to Maximize Sales with Current Customers

OpenView Labs

In terms of potential, however, the fact that ABM can grow new customer pipelines by as much as 200 percent is only the tip of the iceberg. To maximize your sales, look to your existing customers. Your Existing Customers Are Money in the Bank. Nurture customers.

The Ultimate Mobile Analytics Cheat Sheet

Chart Mogul

Whether you’re driving new streams of revenue or engaging on-the-go users, you need to know how your app is performing. These are the key metrics that will help you understand your mobile growth operations.

Highlights from TSW ‘18 in Las Vegas

Totango

It was a valuable and insightful event and the turnout at our booth from prospects and customers plus the successful session with our CEO Guy Nirpaz and Dilip Kumar, COO of Dimension Data, as they presented how Dimension Data has achieved better business results overall running on Totango, was by far the highlights for us. Dimension Data has seen benefits in a big way including accelerating their customer lifetime value while exceeding customer adoption, expansion, and renewals goals.

The Top 5 Customer-Centric Goals for an Enterprise

Totango

These days, customers expect personalized service. The digital transformation of business means that customers can easily leave a professional relationship that isn’t working for them. Enterprises need to keep customers happy because it’s never been easier for them to find alternatives.

What are the Benefits of Customer-Centricity?

Totango

Imagine if you could give your customers that “day 1” feeling of excitement and potential throughout the entire customer journey. That’s the goal Amazon CEO Jeff Bezos has for his customers. 3 Benefits of Customer-Centricity . Promote new value.

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The Complete Guide to Improving Your Customer Success Health Score

Totango

This is certainly true of the customer success health scores used to monitor the status of customers. When a health score indicates that a customer requires attention, you also need to know what went wrong and how to fix it. To improve the diagnostic value of customer success health scores, build them around the right metrics and derive solutions by understanding how those metrics impact customer lifetime value.

Why You Should Focus on Nurturing the Customer Relationship

Totango

The digital transformation of business has created a customer-centered economy where customers seek short-term commitments and value choice, flexibility, and personalized service. This has irrevocably changed how enterprises need to approach customers.

IDG Contributor Network: 3 leading indicator Software-as-a-Service metrics to understand where your business is heading

Network World

We all know the flagship metrics by which Software-as-a-Service businesses are gauged — Customer Acquisition Cost, Customer Lifetime Value, churn and the like.

IDG Contributor Network: 3 leading indicator Software-as-a-Service metrics to understand where your business is heading

Network World

We all know the flagship metrics by which Software-as-a-Service businesses are gauged — Customer Acquisition Cost, Customer Lifetime Value, churn and the like.

Excel template for cohort analyses in SaaS

The Angel VC

Cohort analyses are also essential if you operate a SaaS business and want to know how you’re doing in terms of churn, customer lifetime and customer lifetime value. Start with January 2013 and enter the number of new customers that you’ve acquired in that month.

Add ChartMogul metrics to Octoboard

Chart Mogul

Many of our customers like to see their ChartMogul numbers alongside other business data. That’s why we make sure to collaborate with partners and customers on syncing key metrics with other systems, like Geckoboard, Visible and Numerics. Customer lifetime value.

Why Customer Success is Important in the Modern Age

Totango

The old sales idea of courting and closing a customer in a single effort and considering their value “bagged” from a one-off transaction is as antiquated as dial-up modems. This is why customer success is critical now. The Role of Customer Success Teams.

Announcing the ChartMogul PayKickstart integration

Chart Mogul

PayKickstart merchants can now connect to the ChartMogul platform for powerful insights into their recurring revenue, subscription metrics, churn and customer lifecycle data. Customer Lifetime Value (LTV).

Google Play integration completes mobile subscription analytics puzzle

Chart Mogul

With this new integration you can: Analyze and use all of our favorite subscription metrics like monthly recurring revenue, churn rate, and customer lifetime value.

How to Gather Customer Insights with CS Software

Totango

Customer Success Management (CS) software helps your enterprise understand what matters to your customers. And what matters most to your customers should matter most to you. It all starts with knowing how to gather customer insights and properly leverage that data. .

Proven SaaS Customer Success Best Practices to Increase Lifetime Value

Totango

The digital transformation of business has led to an explosion of demand for SaaS products, but the low barrier to entry and the fluidity it has afforded customers has created immense competitive pressures. SaaS Customer Success Best Practices That Work. Shared customer information.

Are you data rich, but insight poor?

InsightSquared

For a customer support org, it may be agent productivity versus customer satisfaction rating. Another example of complementary metrics is CAC (customer acquisition costs) and LTV (customer lifetime value), which balance spend and revenue.

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ChartMogul is one of the first to join new Stripe Partner Program

Chart Mogul

By joining the program, our mutual customers will now benefit from the combination of ChartMogul’s subscription revenue and customer analytics and Stripe’s seamless payments platform.

A KPI dashboard for early-stage SaaS startups – new and improved!

The Angel VC

Needless to say a template can only be a starting point, as every SaaS startup is different and needs to build its own, customized dashboard.

Cohort Analysis: A (practical) Q&A [Guest Post]

The Angel VC

Without further ado, here it is! - - - - - - - - - - At Point Nine we believe that the only way to get a real sense of user retention and customer lifetime is doing a proper cohort analysis.

The Ultimate Guide to Creating a Customer-Centric Culture

Totango

It is a tangible presence customers can see and feel in the way you engage them, respond to them, and present the product. This way, every customer interaction is informed by as much personal information as possible. Why a Customer-Centric Culture Matters.

Total Contract Value (TCV): Definition, Importance, & How to Calculate

ProfitWell

Total contract value (TCV) is one of the most useful core SaaS metrics, but it's also one of the most poorly understood. What is total contract value (TCV)? Total contract value measures how much value a contract is worth once executed. TCV vs. ACV (annual contract value).

New: Start analyzing your iTunes Connect data in ChartMogul

Chart Mogul

We’re excited to announce that our iTunes Connect integration is now available to all ChartMogul customers! This focus on user experience has led many companies to develop native apps — in addition to web-based apps — in an effort to best support customers on whichever device they prefer.

Preparing For Acquisition - The Due Diligence Checklist

Cardin Partners

Preparing to sell your company requires a lot of work. Whether planned or unsolicited, when the time comes to ready the company for sale, you will be able to move much more quickly if your financial house is in already in order.