VC Cafe
FEBRUARY 21, 2023
A high retention rate indicates that customers find the product or service valuable and are likely to continue using it in the future. Churn : The percentage of customers who stop using a product or service after a certain period of time, typically measured over weeks, months, or years. The benchmarks are based on the US market.
David Teten
DECEMBER 3, 2019
Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.
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Seeing Both Sides
JULY 21, 2014
But many years later, I began to appreciate that one of our core flaws was our business model. But the downside to our business model was that we did not have hardly any recurring revenue. . Recurring revenue business models are not a little bit better than non-recurring models. million to $22.5
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.
Up and Running
MARCH 11, 2015
That’s going to help you put your financials together, and it’s also going to help because everybody loses customers, so in your model you have to be able to say what the retention rate is of that customer as well, and the churn rate. Then referral rates and opt-out rates. This is what we track.
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