Up and Running

FEBRUARY 12, 2019

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales ? percent average conversion rate. 5 percent monthly churn rate. percent average conversion rate. 5 percent monthly churn rate.

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

SVPG

AUGUST 10, 2014

In this world, each product manager would worry about the cost structure of their product, the marketing plan, sales forecasts, contribution and profitability. The origin of this question comes from the days when companies had a portfolio of products where each product represented one or more SKU’s. Think consumer packaged goods.

Churn Rate 71

Churn Rate Forecast Portfolio Leadership 71

Up and Running

JANUARY 24, 2014

What’s more compelling than big talk is to show exactly how you will reach those millions—what information about your company do you have that’s made you forecast those kinds of sales? 0.22% average conversion rate. 5% monthly churn rate. 0.22% average conversion rate. 5% monthly churn rate.

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

VC Cafe

NOVEMBER 2, 2019

Forecasting is sometimes done by dragging the mouse based on many assumptions, because it’s hard to predict the future. 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?

B2C 141

B2C Technical Review Startup Retention 141

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

Up and Running

AUGUST 21, 2014

What a lot of companies or startups don’t realize is when you put up forecast together, it’s difficult if you’re a startup. If you look at something like Constant Contact with a 2% churn rate, their customers are going to stick around something around 36 months. Hopefully, that helps answer that question.

Metrics 84

Metrics Startup Churn Rate Forecast 84

Seeing Both Sides

OCTOBER 24, 2015

Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%?

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20

Up and Running

MAY 1, 2014

Your business plan isn’t complete without a financial forecast. An online software company might look at churn rates (the percentage of customers that cancel) and new signups. Three-year projections are typically adequate, but some investors will request a five-year forecast. Sales Forecast. Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Seeing Both Sides

JULY 21, 2014

Your forecasting process is much more accurate. In a SaaS or subscription software business, you can predict your churn rate and new business closings to determine your growth rate. When you have a recurring revenue business model, you rarely miss your monthly or quarterly numbers by more than 10-20%.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Up and Running

OCTOBER 3, 2014

When we were starting LivePlan, we built out a subscription sales forecast to help us plan and to start to understand the key numbers that would drive the new business. But, beyond the forecast, we needed to know what metrics we should be tracking. Churn and Churn Rate. MRR (Monthly Recurring Revenue).

Metrics 96

Metrics Churn Rate Forecast Revenue 96

Up and Running

NOVEMBER 12, 2018

The five key metrics to judge your subscription model’s success are: Churn and churn rate. Here are the components of the financial plan that you’ll need to include: Sales forecast : There are two parts involved with your sales forecast — annual revenue projections and cost of goods sold (COGS).

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

ConversionXL

OCTOBER 30, 2019

The goal at this stage is to re-engage and reactivate those who are demonstrating at-risk behavior patterns or who have completely churned. Metric examples: Customer save rate; Customer churn rate; Re-engagement rate. When you start considering LTV forecasting, segmentation, cohorts , etc.,

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

OCTOBER 30, 2019

The goal at this stage is to re-engage and reactivate those who are demonstrating at-risk behavior patterns or who have completely churned. Metric examples: Customer save rate; Customer churn rate; Re-engagement rate. When you start considering LTV forecasting, segmentation, cohorts , etc.,

Retention 48

Retention Metrics Churn Rate Acquisition 48