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. […]