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How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)

ConversionXL

Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. Although investors bet on the future, they can’t ignore the present health of the business. It’s important to be aware of which churn you’re using in your LTV calculation, as they might give different answers.

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The Beginner’s Guide to SaaS Conversion Optimization

ConversionXL

Reducing churn rate. visit → active user (according to Stephen’s presentation, this is the best value one usually). Take the revenue you earn from a customer, subtract the money spent on acquiring and serving them, and see how long they generate profit before churning. LTV = ARPA * % Gross Margin / % MRR Churn Rate.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

I use Google Drive to host my conference presentations , which are all embedded at teten.com. I previously posted a detailed presentation with sales technology tools useful for B2B sales. The majority of funds are using the popular B2C websites and services for basic due diligence, e.g., Linkedin, Twitter, HackerNews.

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Freemium Mechanics

Venture Chronicles

The net result was still a decline in new customer conversions and our churn rate (turnover of all paying customers in a single billing period) stayed constant or declined slightly so I would have to say that elevating Free to first world status did not improve the business.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. A profitable business will have a positive CLTV. 4:31 PM.