SaaS Social Media and Updates

Adapt LTV Formulas for Subscription‑plus‑usage SaaS Models

Today, we covered LTV and LTV+ in my SaaS metrics course. If you operate on a subscription + usage revenue model, you must adapt the formula to account for usage revenue. The question I ask...when we land a new customer, what revenue streams do we expect from that customer? Are SaaS metrics dead? Yes, if you don't adapt the formulas for the type of revenue streams that you are offering. That dictates how you set up MRR schedules, your revenue forecasting, variance analysis, metrics calculations, and on and on. There are haters of LTV to CAC, but it's relevant in SMB up to mid-market motions. #SaaS