Customer lifetime value is one of the most important metrics to measure for any company wanting to improve sales or scale-up. SaaS companies find it is even more critical to their success than anything else. Every type of software relies heavily upon the customer experience, measuring every aspect of it from usage of the app to customer service itself.
With happy customers and a low churn rate, SaaS companies can achieve incredible CLV and revenue growth.
There are several different ways you can calculate customer lifetime value. You could use the Customer Service Metrics Calculator offered by HubSpot. Or you could take a more straightforward approach by calculating your annual earnings and dividing it by the number of customers that your company served over that time.…Continue reading