Two core metrics for SaaS growth and profitability are Annual Recurring Revenue (ARR) and Customer Lifetime Value (LTV). Customer Success, therefore, is all about retaining customers (i.e. reducing churn) and maximizing the average revenue that each customer generates. As we highlighted in our previous blog, it’s well understood that the cost of acquiring new customers is much higher than the cost of retaining existing ones. Studies have shown that reducing monthly churn by 5% can result in 50% more revenue over five years.
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