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Is my churnrate below the category average? Benchmarks are typically specific to stage/businessmodel/geo. The main B2C benchmarks have to do with traction: growth in user acquisition, user retention/churn, monetisation, as well as the effectiveness of consumer marketing + virality.
Neither would have achieved virality had customers not received something tangible for their efforts. In the retention phase, measure these performance metrics: Retention rate vs. churnrate Customer churn Net Promoter Score Email open rates Email click-through rate.
Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Similarly, Corsis uses benchmarking data to understand technology spend patterns.
Perhaps it's an increase in your conversion rate; Or a higher number of visitors who sign up; Or a greater number of people who share content with one another; Or a lower monthly churnrate for users of your application; Maybe it's even something as simple as getting more people into your restaurant.
To become profitable using a freemium businessmodel, this simple equation must hold true: Lifetime value > Cost per acquisition + Cost of service (paying & free) Said in plain english, the lifetime value of your paying customers needs to be greater than the cost it took to acquire them, plus, the cost servicing all users (free or paying).
Conventional wisdom suggests that the most important metrics for a startup - such as unit economics, cost of acquisition, lifetime value, churnrates - typically get better with time. Churnrates are another metric that can get harder with scale. in 2009 to $11.80
If you're working on the Sticky Engine of Growth , you're focused on very different metrics from those that you care about in the Viral Engine of Growth. Here's what they have to say about churnrates in SaaS businesses: The best SaaS sites or applications usually have churn ranging from 1.5% to 3% a month.
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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