SaaS Customer Retention
It takes around good 11 months for a SaaS Business to earn what it has spent on acquiring a new customer, this is why retention is crucial. Therefore, it is vital for your business to keep your existing customers satisfied and delighted.
CLV helps in creating a recurring income stream, this is why it is recommended that a SaaS business should have a higher LTV to maintain a healthy income stream. Considering the fact that retention is more cost effective than acquisition, SaaS businesses should have a firm grip on their customer base. According to experts, adding as little as 5% retention to your customer base can help boost the profits by 95%.