A SaaS Academy client recently asked me what SINGLE metric I would look at if I had to bet on the future success of a software company.
It all comes down to this…
Net negative churn.
Simply put, if your expansion revenue is growing faster than your contraction revenue (from downgrades and cancellations)…
… your momentum pretty much becomes unstoppable.
(Hint: having a $7 unlimited pricing level isn’t how to get there.)
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As you may have guessed… it all starts with reducing churn.
Can’t expand your relationship with customers who jump ship 😉
But once you get your churn fixed… there’s a sweet science to increasing LTV’s while bringing MORE value to your customers.
Here’s a high level rundown:
- Fix your churn
- Redesign your price plans
- Price on value
- Create add-ons
- Offer partner solutions
Watch this video and then leave us a comment sharing any strategies and tactics you’ve personally used to expand LTV.