It is very good to conquer a new client, but it is even better to keep it. Understand more about the subject and learn how to retain customers in your SaaS company. In this monetization format, the company earns from the monthly subscriptions of the customers. That is, the longer they stay as subscribers, the better. But then how do you know how much profit you can expect from a consumer? That is what the lifetime value (LTV) is for. This metric will show you how much a typical user of your software is going to do for the time they stay with your customer base. The higher the LTV, the more benefits you will have. But what can you do to increase it? It is exactly what we will focus on today!
What is the Value Behind Customer Retention?
While there’s nothing wrong with growing your consumer base, it’s essential to remember the real value of customer retention and brand loyalty. An investigation by SumAll’s social media management platform suggested the following:D 25% to 40% of the total income of the most stable businesses in the SumAll network comes from returning customers. Plus, repeat get a singapore number customers help businesses weather tough economic times. Businesses with 40% repeat customers generated nearly 50% more revenue than similar businesses with just 10% loyal customers. The LTV is precisely the way to measure your customer retention and the value they bring to your SaaS company. In the end, increasing the value of life means higher profits. Considering that selling to a returning customer has a lower cost of acquisition (CAC).
How to Increase Lifetime Value
Based on the above definition, it will be those 2 metrics that will affect your LTV. Increasing the 1st or decreasing the 2nd will result in a higher LTV. But what steps can you take immediately to retain your customers and increase the average value they spend with you while keeping them satisfied with the product? We present 5 suggestions to meet such noble CG Leads objectives:1. Publish relevant content in newsletters newsletter may sound like an old-school trick, but it’s also a great way to improve LTV. “How so?” you may ask. First of all, a newsletter keeps your company in the mind of the customer. How can they forget about you if you continue to send regular offers and spectacular materials via email?