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What is customer lifetime value?

Intercom, Inc.

Customer lifetime value (CLV, also known as CLTV), represents the total estimated amount a customer is expected to spend on your products or services over the course of their lifetime. To estimate CLV, you must first assign a specific value to each of your customers.

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5 Interesting Learnings from Chime at $2 Billion in ARR

SaaStr

Word-of-Mouth is Their #1 Source of New Customers. Referrals are Chime’s largest acquisition driver since 2022 , helping bring sales & marketing spend down to 26% of revenue in Q1 2025, from 42% in 2022. This dramatic efficiency gain came from building a product so compelling that customers naturally recommend it.

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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. Customer Lifetime Value is just Churn inverted. And most importantly — it Will Work out.

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The New Software GTM Playbook

Tom Tunguz

Mark Roberge published The Sales Acceleration Formula about Hubspot’s journey. Account executive to SDR ratios, sales cycle lengths, conversion rates, customer acquisition costs, customer lifetime values, net dollar retention. Salesforce championed it.

Software 304
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5 Interesting Learnings from Xero. As It Approaches $1B in ARR.

SaaStr

and (y) a complex sales process with sales reps selling to very small businesses not paying all that much. A tough way to build a decacorn — sales-driven very small-business sales — but they’ve done it, so there’s a lot to learn here. Customer Lifetime Value is 81 months, from SMBs.

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How to Increase Customer Lifetime Value with Personalized Retention Marketing?

User Pilot

Personalization makes customers feel happy and recognized as valued customers. Because personalization strategies lead to a more satisfying customer experience, they also: Improve customer lifetime value. Customers are more likely to stick with a company after receiving excellent customer service.

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

SaaStr

” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! 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.

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