ConversionXL
OCTOBER 8, 2021
Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. It’s a sign that you need to review CAC of your prominent channels and look at the growth marketing funnel to understand where the fault lines are. Segmenting CAC to prioritize channels. Fixing the Leaks.
Cracking the Code
OCTOBER 10, 2008
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. Philippe Botteri. Bessemer SaaS Law #5.
ConversionXL
MARCH 15, 2016
According to a 2014 State of SaaS report from Compass , SaaS is a $10B industry in North America. So, the channel selection (vs. Churn rate is proportional to the distance between sign-up and value. When I say “user onboarding”, you likely think of SaaS companies first, right?
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