One of the many success metrics in SaaS business is the Customer Lifetime Value (CLTV).
In a nutshell, this refers to the total revenue a business can get from a single customer over their lifespan.
For example, if it costs $100 to win every new customer, but they stay for 3 years and pay on average $250 a month, then the CLTV is $2,150. Which is a pretty good return on a $100 investment.
In a strong economy, increasing this number would be a good idea. But in the present-day economic climate, considering the current fiscal crisis and growing competition, getting more revenue from the same number of customers could literally save your business.
After all, higher revenue from existing customers makes it easier to hit target. You can also generate stronger profit margins once you’ve gotten to that point.
So, if you’re looking to increase your CTLV, here are the 5 strategies SaaS companies should consider.