Category Archives for "SaaS"

Jul 10

What Is Customer Lifetime Value (CLTV) and How to Measure It

By Eckhard Ortwein | Lean-Case

Customer lifetime value

CLV, CLTV or LTV is one of the most important metrics for growing companies which can help you understand a reasonable cost of customer acquisition. Roughly defined, customer lifetime value (CLTV) indicates the total revenue minus rlated cost a business can expect to generate from a customer in the course of business relationship. CLTV compares customer’s revenue value to the company’s predicted customer lifespan and allows businesses to identify significant customer segments that are the most valuable to them. Whether you have a traditional offline business, a fully digital business like SaaS or some combination of the two, calculating your CLV can help you make smarter decisions about your marketing and sales budgets and bring better returns on your investments.

In this article, we’ll briefly cover how to calculate CLTV and how to get started with CLTV analysis.

Continue reading
Dec 10

The SaaS Business Model – double revenues with incremental improvements

By Eckhard Ortwein | Business Model

LeanCase WinningbyDesign

The SaaS Business Model and the power of incremental improvements 

This post illustrates how incremental improvements along the Customer Lifecycle of a SaaS Business Model can result in massive changes of outcome for revenues as well as profitability.  In Customer Lifecycle models  revenues are not the sum of deals, but the product of conversion and expansion rates, creating "multiplicative" instead of "additive" impact. We describe which time, conversion, volume and financial metrics are required to capture all assumption for the business model. Learn how you can more than double your revenues by improving key metrics only between 10% and 15%.

Continue reading
Feb 14

75 Best Practice SaaS Benchmarks for your Business Case

By Eckhard Ortwein | Benchmarks

75 Best Practice SaaS Benchmarks for your Business Case

Facing reality - using Benchmarks in SaaS Business Planning

This post provides SaaS entrepreneurs, Business Managers and Investors with an overview of top resources for SaaS and Software benchmarks.Across those resources, we have selected 75 best practice benchmarks to make reasonable assumptions in numerous situations … when creating your SaaS business case, when finding the right growth strategy, when trying to understand your performance or reviewing an investment proposal. You can access all these benchmarks plus many more online in the Lean-Case Benchmark portal. They help you to face reality. You can apply benchmarks - either to vet your business model assumptions or to measure your actual performance against peers. 

Continue reading
Oct 16

Creating a SaaS B2B Business Case in 30min

By Eckhard Ortwein | Lean-Case

B2B_Tutorial_0_SaaS_B2B Business Modell

Understand if your case is viable

We are going to show you how you can understand Customer Lifetime Value and your Unit Economics by creating a Software-as-a-Service (SaaS) Business Case in Lean-Case. It takes 3 steps and 30 mins to set up your customer pricing, set up the profile of a Sales Team with a Quota and the time plan when you add teams to your plan. 

Continue reading

Send this to a friend