Rethink Commerce Blog

Posts Tagged ‘CLV’

Increasing Customer Lifetime Value for Software and SaaS Subscriptions

Posted on February 7th, 2017 by

Most companies have some idea of their customer acquisition costs, or CAC. But another key metric for software companies isn’t always tracked as closely: customer lifetime value (CLV), or the value a customer is expected to bring to a company over time.

It’s incredibly important to keep customers subscribed, renewing, buying more and upgrading after they select your product. However, extending the customer relationship in this way won’t happen accidentally. It takes some conscious planning, effort and testing, and it all starts with tracking your CLV. […]

5 Steps To Boost Your Customer’s Lifetime Value

Posted on September 10th, 2015 by

With marketers under more pressure to prove the value of their programs, metrics are taking on increasing significance. For SaaS marketers, one of the most important metric is the one that measures Customer Lifetime Value (CLV). CLV predicts the value of revenue that you’ll receive from a customer over his lifetime. Once you know that value, you know how much you should spend on marketing and customer acquisition . Determining CLV is especially critical to SaaS providers, because of the complexities in determining customer acquisition costs from, for example, freemium models and variable subscription rates. […]