Chapter 6 Business Model II: SaaS

On-demand software company - key indicators

eyeball

How to attract visitors to the site effect.

Participation

How many visitors registered as a free version or use a version of the user (if you use the free version or versions of it).

Conversion rate

How many free users will eventually become paying customers, of which there are many people to upgrade to a more expensive level of service.

The average revenue per customer

Per unit time average per-customer revenue.

Customer acquisition costs

Cost to get a paying customer.

Viral

Customer invite others or the possibility of the company's products as well as the time required to recommend to others.

Up-sell

What motivates customers to pay more, and the frequency of occurrence of this situation.

System uptime and reliability

The company will face a number of user complaints, questions or upgrade service disputes.

Turnover

Churn rate refers to the percentage of users be lost over a period of time. And the number of users paying customer churn per unit time.

Simple formula is as follows:

(The loss of the number of users over a period of time) / (# of subscribers during the period beginning)

The turnover rate correction:

(The loss of the number of users over a period of time)

(Number + the number of users at the beginning of the time period at the end of the time period the user) / 2

The above two methods have drawbacks, but there are two ways you can simplify it:

The first is dating to measure the turnover rate, that is the time to register as a basis for comparison of new subscribers and the loss of a number of users. The second method is the wastage rate calculated in units of days, the shorter the off time is selected, the smaller the noise in the data.

Lifetime Value

The total paid customers during product.

 

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Origin www.cnblogs.com/wobujiaonaoxin/p/11499014.html