To get more and more value from my client CLTV

saifulislam15@g

See free classes! That is, if your business is an ecommerce where the customer buys once, twice, three times at most, it is a recurring business model in which month after month they are paying a fee. Let's see how it is calculated based on each business model : How to calculate the CLTV of an ecommerce The formula for an ecommerce is: Customer lifetime value is equal to the average ticket times number of purchases times gross margin How to calculate the CLTV of a SaaS For recurring business models, such as any SaaS, subscription platforms like Netflix or Spotify, a neighborhood gym, a professional who provides tax advice, who receive fees from their clients, the formula is.


Customer lifetime value is equal to the value of the Belarus WhatsApp Number fee that your client pays month by month ARPU for the Lifetime times the churn gross margin. In this case, the CLTV is equal to the value of the fee that your client pays month by month indicated as ARPU for the Lifetime times the gross margin. ARPU is the acronym for Average Revenue Per User, that is, the average income per customer. What is the relationship between Churn Rate and CLTV? As we have seen in the second formula, in the case of recurring businesses, the CLTV depends on the time that customers remain in your company, that is, the Lifetime. I have to get them to stay with me for a long time.





That is, do not unsubscribe. That's where Churn impacts! Do you understand? Churn and SaaS: the impact of subscription business downgrades Churn is a key metric in a subscription business , because it shows you very clearly whether the business is working or not. You can make a great effort and invest large sums of money in recruitment marketing to gain a customer, such as getting them to try your tool and end up paying. But if after a month or two, the customer unsubscribes, you will have lost money. That is why we say that Churn Rate is extremely critical in recurrence business models . For the Churn Rate to be low in your company, the efforts have to be directed at making the customer stay with you.