A SaaS company charges customers an annual fee for its software. The company had $5 million in revenue last year and has 2,000 customers. Dividing its $5 million in revenue by its current customer base of 2,000, the average revenue per customer per year is $2,500.
The company analyzed its customer lifespan and found that the average time a customer did business with the software company was three and a half years.
Multiplying the average revenue of $2,500 by the average lifespan of four and a half years gives a customer lifetime value of $11,250.
While these are the main metrics you should track for customer indonesia mobile database retention, there is a lot more data you can analyze to improve your customer experience. Let’s explore these alternatives in the sections below.
The Importance of Customer Retention
Your company must allocate time and resources to improving customer retention. If developing a comprehensive customer retention or success plan doesn’t feel possible at the moment, start small. Start tracking the metrics mentioned here, and your customer base will grow exponentially.
14 SEO Tips to Increase Traffic in 2023
Everyone wants to rank higher on Google. But in 2022, it’s arguably more challenging than ever.
Today, I want to share some simple SEO tips that helped us achieve our goals.