SaaS revenue models are changing, and so should our SaaS metrics. A SaaS founder emailed me recently about the customer lifetime value metric. His SaaS company has significant usage revenue in addition to traditional subscription MRR. However, traditional SaaS metrics are commonly set up for just one revenue stream. Customer lifetime value (LTV or CLTV) […]
Customer Lifetime Value
How to Calculate Customer Lifetime Value (CLTV)
Customer lifetime value is a ubiquitous SaaS metrics. As a standalone metric, it doesn’t mean much. We must compare it our unit cost CAC to provide context on sales and marketing efficiency., In this post, I’ll explain how I calculate LTV. There are lovers and haters of this metric, but let’s at least put in […]