3 ms·
It's still a loss (for the current year). But this is a SaaS, working with recurring revenue. Some metrics to consider are: - Cost of Customer Acquisition -
by PaywallBuster 5y ago
It's still a loss (for the current year).
But this is a SaaS, working with recurring revenue.
Some metrics to consider are:
- Cost of Customer Acquisition
- Lifetime Value
They could spend 200$ to get an average customer, but they will renew their subscription for an average of 5 years and generate over 2000$ in revenue during that time.
As long as you keep track of these metrics you know you're in a good direction or digging yourself a hole.
Besides other costs R&D, Admin, Marketing and Sales can be scaled up and down as needed, and become a smaller part of the costs as the company grows.
- apple4ever 5y agoBased on my experience, that COCA is high, and the LV is low. They don't work hard to keep current customers.