Both Sides of the Table

APRIL 26, 2016

In product business it is often measured over multiple purchases and assumptions are made about the repeat rates and in the enterprise or services world LTV can be based on churn rates, which are notoriously hard to predict in an early-stage business. Poorly calculated LTVs can become BVs (bankruptcy values).

Metrics 150

Metrics Cost Acquisition Startup 150

ConversionXL

FEBRUARY 3, 2022

In the acquisition phase, measure these performance metrics: Customer acquisition cost Conversion rate Website traffic Click-through rate Bounce rate Quality of leads. In the activation phase, measure these performance metrics: Conversion rate Number of customers using a product feature Drop-off rate Dwell time.

Retention 113

Retention Marketing Acquisition Channel 113

Up and Running

SEPTEMBER 22, 2021

Every conversation someone has about your brand is an opportunity for a new set of eyes on what you have to offer. Lowers churn. Every SaaS business should be tracking and monitoring its churn rate. In fact, every SaaS should be optimizing as best they can to reduce churn. Pick your referral rewards.

Programming 141

Programming Churn Rate Design Campaign 141

Up and Running

OCTOBER 7, 2019

Customer churn rate: shows the percentage of customers lost in a given period (e.g., Revenue growth rate: measures the month-over-month percentage increase in revenue and is the most common and important metric for startups. Conversion funnel: shows how prospects advance through the marketing funnel in a specific duration.

Founder 71

Founder Retention Metrics Technical Review 71

Both Sides of the Table

JUNE 6, 2010

I waited politely for a break in the conversation (about 20 minutes in) and the politely inserted, “I know I’m the least experienced in the room so I hope my question doesn’t come across as naive, but I really don’t know how you arrive at investment decisions. I tried to do a real-time intervention.

Churn Rate 311

Churn Rate Due Diligence Dividend Conversion 311

Duct Tape Marketing

JUNE 7, 2023

15:11] Where does employer branding fit into the conversation of employee experience? [17:18] We looked at net promoter scores, CSAT scores, attrition rates, right? Best places to work, you know, Glassdoor ratings, great place to work ratings, like whatever it was, right? Growth rates, churn rates.

Employee 76

Employee Technical Review Advisory Board Sales 76

ConversionXL

OCTOBER 8, 2021

Freemium users also have a much longer conversion funnel or “ penny gap ” compared to free trial users. This will help you attribute the conversion to the correct acquisition cost. Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate. Fixing the Leaks.

Acquisition 135

Acquisition Churn Rate Cost Customer 135

ConversionXL

DECEMBER 2, 2020

This arrangement made it challenging to give a quick answer to basic questions on user conversions or to comment on traffic rates and MRR. Instead of measuring Awareness, Appeal, and Ask separately, we combined all marketing acquisition efforts under the Awareness stage, leaving Act to account for conversions in the form of sign-ups.

Churn Rate 78

Churn Rate Analytics Retention SQL 78

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

There are numerous online resources to help with the exact mathematical formulas for CAC, CAC payback, churn rate and LTV. So with everything else being equal (MRR, churn rate, etc), you’ll achieve faster CAC payback and more LTV.

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

ConversionXL

NOVEMBER 15, 2016

When we talk about conversion optimization , much of the strategies remain the same across industries. That said, there are some key differences in how experts approach SaaS conversion optimization. Reducing churn rate. Making sure the leads are appropriate for your offer. Measuring and optimizing in-product activity.

Conversion 48

Conversion Churn Rate Retention Metrics 48

Guy Nirpaz

SEPTEMBER 14, 2011

Following Lincoln Murphy’s post on SixteenVentures.com (talking about conversion average rate for free trials, pricing pages or Freemium for SaaS or Web Apps), conversion rate average figures will do no good, as it doesn’t reflect the whole picture and usually lacking context. Social media mentions?

Metrics 48

Metrics Conversion Churn Rate Social Media 48

YoungUpstarts

DECEMBER 4, 2017

Customer happiness is the lifeblood of any business — after all, happy customers mean lower churn rates, increased word-of-mouth marketing, a boost for internal morale, and so much more. If you’re not having regular conversations about your partnership, it makes it difficult to remedy disconnects in a timely manner.

Technology 145

Technology Customer Churn Rate Sales 145

Both Sides of the Table

FEBRUARY 15, 2016

When you raise larger rounds there is more “due diligence,” which includes: calling customers, looking at financial metrics, doing cohort analysis (looking for trends like changes in churn rates), evaluating competitor positioning and understanding more of the competency of your executive team.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Feld Thoughts

MARCH 10, 2012

We had a wide ranging conversation over an hour about the current state of the business and how he’s thinking about the financing. One of these was around churn – he asserted that one of the clear weaknesses of the business was the high churn rate. ” I see this all the time.

Churn Rate 135

Churn Rate Finance Acquisition Conversion 135

Software By Rob

DECEMBER 20, 2016

You’ll learn how to: increase your signup conversions by 15%. improve your “trial-to-paid” conversions. prevent payment-related churn. Use the Signup Abandonment Email to increase your signup conversions by 15%. Payment-related churn can make up to 50% of your overall churn , so it is well worth addressing.

Early Stage 27

Early Stage Email Fractional CTO Churn Rate 27

Software By Rob

DECEMBER 20, 2016

You’ll learn how to: increase your signup conversions by 15%. improve your “trial-to-paid” conversions. prevent payment-related churn. Use the Signup Abandonment Email to increase your signup conversions by 15%. Payment-related churn can make up to 50% of your overall churn , so it is well worth addressing.

Early Stage 27

Early Stage Email Fractional CTO Churn Rate 27

Up and Running

SEPTEMBER 24, 2019

I’ve talked before about the metrics you need to know and track when you are running a subscription business , but there are really only three things you can do to move the needle of growth: reduce cancellations (churn rate), increase average revenue per user (ARPU), and increase the number of people who signup. Reduce churn.

Revenue 73

Revenue Churn Rate Analytics Metrics 73

Ben's Blog

FEBRUARY 29, 2012

“We have a very high churn rate, but as soon as we turn on email marketing to our user base, people will come back” – Yes, of course. To answer that question, I thought back to a conversation that I had years ago with the incomparable Andy Grove. That makes total sense to me, too. Where do lies come from?

Technical Review 78

Technical Review Churn Rate Engineer Employee 78

Both Sides of the Table

APRIL 21, 2020

We discussed why in Q4 you will see large renegotiations of SaaS contracts and increased churn rates. My Thoughts on the Current Market: on 20-Minute VC was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story.

Marketing 263

Marketing Valuation Churn Rate Balance Sheet 263

Steve Blank

DECEMBER 2, 2013

These customer conversations led the Tidepool team to further refine their understanding of the device makers’ economics. And they realized that the use of the Tidepool software could reduce the device companies’ customer churn rate by at least 1%. the Customer Life Time (CLT)). Read the previous sentence again.

Customer 323

Customer Churn Rate Customer Development Lean 323

SoCal CTO

MAY 18, 2010

SaaS Conversion: Which metrics matter? StartupCFO , May 6, 2010 Great look at important metrics for SaaS and the importance of churn rate. Not Betting on Flash , SoCal CTO , May 7, 2010 Why startups should not be betting on Flash as a delivery technology.

Churn Rate 150

Churn Rate Flash Startup Metrics 150

The Next Web

FEBRUARY 21, 2015

Conversions, leads and churn rate. and new technologies (marketing automation, retargeting, custom audiences) has made it more challenging than ever to deliver a consistent strategy and inspired customer experience. Modern marketers look at things like working dollars vs. non-working dollars. Likes, comments, and shares.

Churn Rate 60

Churn Rate CPA Hiring Marketing 60

ReadWriteStart

MARCH 3, 2021

Conversely, investing too heavily in the long term will make it harder to generate initial momentum. If your customer churn rate is too high , it will render your customer acquisition practically useless; every new customer will just be replacing an old customer who left. Balancing short-term and long-term growth.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Up and Running

JULY 27, 2016

I’ve talked before about the metrics you need to know and track when you are running a subscription business, but there are really only three things you can do to move the needle of growth: reduce cancellations (churn rate), increase average revenue per user (ARPU), and increase the number of people who signup. Reduce churn.

Revenue 60

Revenue Churn Rate Metrics Analytics 60

For Entrepreneurs

SEPTEMBER 19, 2011

The goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC). Measuring Customer Engagement is a key tool that will help you achieve that goal, as it will allow you to increase [.].

Customer 167

Customer Conversion Cost Sales 167

Both Sides of the Table

MAY 19, 2018

If a VC meets with 40 eCommerce companies and has the data room on all of them (downloaded on to his or her system) then when they DO finally dig in on an investment opportunity they can compare information such as CACs, LTVs, churn rates, margins, etc. against a broad range of similar companies.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Up and Running

FEBRUARY 12, 2019

percent average conversion rate. 5 percent monthly churn rate. For example, here’s an appropriately detailed financial forecast for a SaaS (software as a service) business: We leverage the site traffic and customer base of partners A, B, and C. 100,000 unique visits/month to our network of online sites.

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

YoungUpstarts

APRIL 14, 2020

Companies that actively focus on CX can significantly reduce churn rates, increase retention rates, and earn higher revenues. The conversation then, goes two ways. These basic efforts establish a human-to-human relationship with customers, and close the gap between online and offline conversations. .

Customer 142

Customer Technical Review Artificial Inteligence Retention 142

Guy Nirpaz

OCTOBER 10, 2011

Many of these conversations started from our SaaS Metrics Survey through which we aimed to capture an even wider view of the industry. Totango SaaS Executive Dashboard from Totango on Vimeo. We’ve chosen the metrics included in the SaaS Executive Dashboard based on discussions with many SaaS companies at various maturity levels.

Churn Rate 70

Churn Rate Metrics Conversion Customer 70

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

OCTOBER 11, 2022

A good retention rate means people continue to choose you over a competitor, deepening customer relationships and reducing churn rate. Is friction in the shopping experience impacting conversion rate? Use qualitative surveys and customer service conversations to gather customer feedback at different stages.

Retention 111

Retention eCommerce Channel Community 111

ConversionXL

FEBRUARY 7, 2014

Calculate Your Churn. ” The easiest metric for subscription software products to check is churn rate. . “On SaaS, target churn rate should be around 2% monthly churn. The way KISSmetrics does this is by calculating the churn-rate for each level of subscription plan. image source.

Software 93

Software Churn Rate eCommerce Flash 93

Up and Running

JANUARY 24, 2014

0.22% average conversion rate. 5% monthly churn rate. For example, here’s an appropriately detailed financial forecast for a SaaS (software as a service) business: We leverage the site traffic and customer base of partners A, B, and C. 100,000 unique visits/month to our network of online sites.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

ConversionXL

NOVEMBER 22, 2022

Featured guides: Bounce Rate vs. Exit Rate: What’s the Difference? What is Click-Through Rate? Conversion rate: Understand marketing success Where to track conversion rate 10. Click-through rate: Understand how your emails and ads engage customers Where to track click-through rate 11.

Metrics 105

Metrics Analytics Marketing Acquisition 105

VC Cafe

NOVEMBER 2, 2019

One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churn rate below the category average? What should our MRR growth be?

B2C 141

B2C Technical Review Startup Retention 141

Guy Nirpaz

OCTOBER 25, 2011

This is indeed an interesting way to look at it, and very analogous to the importance of the “time to convert” metric when it comes to inbound marketing and trial conversion. However, I argue that this is not the only, and maybe not always the best, way to do cohort analysis on SaaS churn. What about you?

Churn Rate 64

Churn Rate Metrics Conversion Business Model 64

Guy Nirpaz

OCTOBER 3, 2011

This principle would increase conversion rates from prospects and maximize penetration rates withing current customers. However, CTLV and CAC are not the only metrics a company should measure – there are other metrics (such as churn rates, account activation rate, account usage statistics, etc.),

Customer 40

Customer Churn Rate Metrics Acquisition 40