Up and Running

AUGUST 21, 2014

The other thing that they’re going to ask you is average revenue per account or per user or per customer. You need to understand how much money is brought in by each individual account or user when looking at the overall revenue. Then churn rate, like I talked about, churn rate will directly affect your lifetime value.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Up and Running

NOVEMBER 12, 2018

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Financial summary : Project your revenue for the first few years. Companies that become a big subset of your revenue are likely strategic alliances, though, which is a later section. Key customers.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

The Equity Kicker

SEPTEMBER 26, 2013

High churn rates. High return rates. revenues per user > cost of acquisition + cost of delivery). High referral rates. High net promoter score. incentivised traffic, users recruited under false pretences). Adding users via channels that will never become economic. Loyal customers.

Churn Rate 91

Churn Rate .Net Acquisition Channel 91

The Equity Kicker

SEPTEMBER 29, 2016

For marketplaces and ecommerce companies that means revenues (net of VAT) less any discounts or rebates, the cost of the physical item, delivery costs and the cost of returns. This chart is most useful for companies like ecommerce businesses and marketplaces where customers make repeat purchases on irregular schedules.

Churn Rate 60

Churn Rate eCommerce .Net Acquisition 60

Up and Running

NOVEMBER 13, 2020

Digital customer experience is a standard that evolves by the second, and measuring the customer’s satisfaction requires more effort on a business’ part than simply recording excess inventory or revenue growth. Customer experience is a long-term effort.

Customer 135

Customer Churn Rate Silicon Valley Retention 135

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.” against a broad range of similar companies.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Up and Running

MAY 1, 2014

An online software company might look at churn rates (the percentage of customers that cancel) and new signups. A typical P&L will be a spreadsheet that includes the following: Sales (or Income or Revenue). This number will come from your sales forecast worksheet and includes all revenue generated by the business.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Version One Ventures

SEPTEMBER 28, 2015

Old churned users = inactive users from the previous cycle(s) who continue to be inactive in this cycle. Knowing the number of users that have churned allows you to calculate your churn rate. Churn Rate = # of users churned at end of the time period / # of total users at the beginning of the time period.

Metrics 60

Metrics Churn Rate Due Diligence Social Network 60

ConversionXL

FEBRUARY 7, 2014

When a business increases it’s webinar attendance by 1000% & net $40,000 in the first 3 sessions, you should probably listen to what they’re doing right. Calculate Your Churn. ” The easiest metric for subscription software products to check is churn rate. . image source. image source. image source.

Software 93

Software Churn Rate eCommerce Flash 93

ReadWriteStart

AUGUST 26, 2022

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. You can break that down into the inverse of that churn. Would you say that? . David Zhang. David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

ConversionXL

NOVEMBER 15, 2016

Reducing churn rate. visit → sale (better indicator of revenue, but this increases the duration of the test). visit → sale (better indicator of revenue, but this increases the duration of the test). Expansion MRR: Expanded revenue from existing customers, usually from upsells and cross-sells. Gross margin.

Conversion 48

Conversion Churn Rate Retention Metrics 48

ConversionXL

AUGUST 13, 2019

It’s common for companies to put a revenue figure on what it means to be successful in SaaS. But only 400 software companies have made it to the $500M revenue mark. Chances are you’ve been told to focus on metrics like: Monthly Recurring Revenue (MRR); Lifetime Value (LTV); Customer Acquisition Cost (CAC).

Metrics 117

Metrics SQL Retention Churn Rate 117

Cracking the Code

DECEMBER 11, 2015

how many searches are available on Adwords) and what is the quota attainment and churn rate of the sales people as well as their profile SMB online sales (e.g., These teams are typically run on monthly quotas. For this model, I like to understand how scalable the lead gen model is (e.g.,

San Francisco 48

San Francisco Churn Rate Silicon Valley Engineer 48

ConversionXL

NOVEMBER 22, 2022

new customer aquisition, conversion rate, and churn rate ). For example, if you want to see how a landing page contributes to your goal of increasing sales, conversion rate is a good metric to track. High engagement results in increased awareness and strong brand affinity, which leads to increased revenue.

Metrics 105

Metrics Analytics Marketing Acquisition 105

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

ConversionXL

NOVEMBER 17, 2022

In thinking about the bigger goal of digital transformation, 46% say they have been able to identify and create new product and revenue streams, and 45% of organizations are now using data and analytics to develop new business models. The company once had the market’s highest churn rate and lowest Net Promoter Score (NPS).

Analytics 106

Analytics Metrics Channel Campaign 106

ConversionXL

AUGUST 12, 2016

A flowing sales funnel is crucial in any business, but even more so with SaaS businesses… Unlike other business models, revenue is generated over an extended period of time. Monthly Recurring Revenue (MRR). Monthly Recurring Revenue, or MRR, is a measure of the predictable and recurring revenue of your subscription business.

Software Review 48

Software Review Metrics Revenue Acquisition 48

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. The ROI of an existing customer is higher than the ROI of a net new customer. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. The ROI of an existing customer is higher than the ROI of a net new customer. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates.

Retention 48

Retention Metrics Churn Rate Acquisition 48

ConversionXL

MARCH 5, 2014

It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model. Using Hubspot’s example, let’s say you spend $1,000 in PPC, which nets you 500 visitors. At least you’ll have something to benchmark so you can reduce your churn rate later. image source.

Customer 133

Customer Churn Rate Retention Acquisition 133