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One question that keeps coming up when speaking with early stage entrepreneurs when it comes to funding, is what metrics the company needs to hit to raise seed/series A/B etc: What’s a good conversion rate? Is my churnrate below the category average? What should our MRR growth be? Source: The SaaS Napkin.
Back in 2016, I read a book called Sprint by Jake Knapp, founder of Google Ventures. Churnrate was high for a service that many organizations saw as a “nice to have.” Here’s what our very first landing page looked like in 2016: This landing page wasn’t pretty and broke many copywriting rules in the book. Image source ).
In fact, mobile app revenue for 2016 is estimated at $58 billion. Churnrate is proportional to the distance between sign-up and value. Perhaps due to personal preference and ease of use… But they’re not just browsing, they’re converting. So, all-in-all, mobile apps can be quite profitable, right?
Reducing churnrate. Stephen Pavlovich, CEO of Conversion.com , gave a great talk on SaaS conversion optimization at ConversionXL Live 2016. Take the revenue you earn from a customer, subtract the money spent on acquiring and serving them, and see how long they generate profit before churning.
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