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Is my churnrate below the category average? Benchmarks are typically specific to stage/businessmodel/geo. In this post I’ll focus on benchmarking resources for seed and series A in the following three categories: SaaS B2C / Consumer apps Deep tech. 500 Startups created a helpful primer on key B2C metrics.
A high retention rate indicates that customers find the product or service valuable and are likely to continue using it in the future. Churn : The percentage of customers who stop using a product or service after a certain period of time, typically measured over weeks, months, or years. Hope you find this helpful.
The majority of funds are using the popular B2C websites and services for basic due diligence, e.g., Linkedin, Twitter, HackerNews. Lean Case provides standard businessmodels & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.
If you are interested in freemium businessmodels or any of the variations on the theme, this is well worth reading however I take issue with a couple of points. This is an interesting discussion and the body of work that can be studied is relatively small and fluid given the immaturity of freemium as a businessmodel.
You validated our businessmodel and added huge value to our efforts. This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churnrates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period.
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