crowdSPRING Blog

OCTOBER 18, 2013

You Can’t Be a Wimp—Make the Tough Calls | Harvard Business Review – crowdspring.co/H4gLnT. The Future of Business Models Will Be Centered on Crowds - crowdspring.co/16aTTiD. “Investing early & often in customer success is essential to keeping a fast-growing SaaS business’s momentum.” crowdspring.co/19IC5KK.

Social Media 92

Social Media Small Business Design Media 92

Lightspeed Venture Partners

NOVEMBER 19, 2012

The company launched six months ago and so far has grown to 110 subscribers, with all customer acquisition coming from PR and referrals. They are seeing an 85% monthly renewal rate. With a 15% churn rate, that suggests about $7 in lifetime value. This business can’t work. Adding these up gives $15/mth.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Seeing Both Sides

FEBRUARY 9, 2015

Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churn rates - typically get better with time. For example, PR doesn’t scale. Churn rates are another metric that can get harder with scale. in 2009 to $11.80

Metrics 20

Metrics Churn Rate Acquisition SEM 20

Cracking the Code

OCTOBER 10, 2008

You validated our business model and added huge value to our efforts. 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.

Software Review 48

Software Review North America Europe Metrics 48