Months to Recover CAC What is it? How to calculate it? Months to Recover CAC Months to recover CAC is a measure of time that demonstrates how long do you take to recover the amount of money invested on customer acquisitions (CAC). It tells your break even on a specific customer, group … Read more
Introduction Security is one of the main reasons why many businesses, especially small and medium businesses hold themselves back from taking advantage of powerful cloud technologies. The total cost of ownership was once the main roadblock for potential SaaS customers, but security is now arguably on top of the list. The concerns … Read more
When it comes to measuring subscription businesses, unit economics is crucial. Miscalculating or misinterpreting these numbers can be really harmful to your business. This set of metrics will tell you if you’re building a sustainable business, and that is only possible with profits. One can say that making no profits is not necessarily bad, … Read more
When it comes to B2B SaaS sales cycles, it’s never easy to know if you’re doing good. How many days does it take to close a deal? What factors and characteristics affect this number? The first thing to understand is that SaaS sales cycle can vary dramatically, depending on a few factors. … Read more
You probably know tons of different SaaS and subscription metrics, and you probably heard you should be measuring a few of them no matter what. Actually even we have told you that on the “5 metrics that every subscription business should be measuring” article. Guess what? That isn’t necessarily true. Don’t get … Read more
If you’re just getting started to acquire your very first customers, churn may not be a big deal, but as soon as you get over a hundred customers to churn becomes crucial. And by crucial, I mean it can be the difference between the success and failure of your business. A high churn … Read more
At its core, customer engagement score is a single metric that is used to measure how engaged your customers are. The metric is represented by a number based on customer activity and usage of your product or service — the higher the number the happier and more engaged the customer. Together with customer … Read more
Churn is the enemy of any subscription company. In a general definition, churn is the number or percentage of subscribers to a service that discontinues their subscription to that service in a given time period. In order for a company to expand its clients base, its growth rate must exceed its churn … Read more
Yearly billing can make all the difference in the world for the health of your SaaS business, and I’m going to show you why. The way a company decides to bill its customers will directly impact revenue streams needed to maintain cash flow and business operations. If you’re building a SaaS company looking … Read more
Have you ever heard about the subscription economy? The term refers to the business of offering subscriptions to consumers. For some companies, their entire business relies on a subscription business model. Examples of these include Netflix, Spotify, Zipcar, and all SaaS companies such as Salesforce and HubSpot. It’s actually not that … Read more