Rethink Commerce Blog

Posts Tagged ‘customer lifetime value’

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. […]

Why Knowing Your LTV is Vital to Growing Your SaaS Company

Posted on February 29th, 2016 by

Regardless of whether you are a new or experienced SaaS marketer, getting a handle on the metrics can be difficult business. As everyone in SaaS quickly learns, tracking success is much more complex than simply tabulating the sales numbers. For SaaS, the initial purchase is just one (and usually only a small) part of the overall value calculation. As customers, not purchases, are the real currency of the SaaS business, you won’t be able to benchmark your success until you can calculate the value of each customer – in terms of subscriptions renewed and expansion and marginal revenue gained – over the life of the relationship. […]

Three Online Selling Capabilities Software Firms Need to Increase Customer Lifetime Value

Posted on February 2nd, 2016 by

Undoubtedly, customer lifetime value (CLV) is a core success metric for any SaaS company. If your company is going to continue to grow – and remain profitable – you need to be able to consistently identify your most valuable customers and increase their value over the life of their subscriptions. Clearly, determining and improving your CLV is a crucial business activity. […]

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. […]

The Best Marketing Strategies For SaaS Acquisition

Posted on March 4th, 2015 by

Growth and the ability to create sustainable long-term success for SaaS companies are typically a function of three key factors – 1) New SaaS acquisition, 2) Long-term retention, and 3) Maximization of customer lifetime value (CLTV) through effective up-selling/cross-selling and timely subscription renewals. […]