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Lifetime value of a customer on Software Projects

by ashleygfit
4 replies
Hi All!

So I was trying to figure out how long customers use our recurring product. Software projects gives me a general number, but I want to know the typical amount of time a customer stays before they cancel. Maybe they stay around 3 months, 4 months, I want to see at what month they drop off? Is there software for this? A formula?
I've been playing with the data they provide and trying to figure it out, but kinda stuck.

Thanks for your help in advance!
#customer #lifetime #projects #software
  • Profile picture of the author Oziboomer
    Why is that important to you?

    Averages can be deceiving and it is not like a youtube video drop off time where you can modify your content or put a call to action before the drop.

    Surely it is your goal to maintain subscriptions as long as possible and that will come down to UX and nurturing.

    If you are trying to sell a business it might be helpful to have an average figure but really does that tell the story behind why some people stay 9 months, 12, 36 or a lifetime and others drop after two months?

    The biggest challenge for any membership or SAAS is to get customers engaged after they purchase.

    If you focus on getting them engaged you won't need to worry so much about when they cancel.

    Best regards,

    Ozi
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  • Profile picture of the author henrym37
    Look. You will only get paid for Retail Product Sales And Recruiting. Meaning you have to get new customers and distributors all the time. What is it that you do...
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  • Profile picture of the author Steve B
    Originally Posted by ashleygfit View Post

    I was trying to figure out how long customers use our recurring product . . . Is there software for this? A formula?

    Every business is different and to assume that any other business is comparable to yours is dangerous logic. Your product is different than all others, your location is different, your company management is different, your past history, goals, and workforce are different. Your budget is different, your audience is different, your financial resources are different, and on and on.

    Don't you have the data within your own company that tells you how long your customers stay with your software? You should. Set goals, objectives and benchmarks based on current customer retention and then analyze what you could be doing that you're not to keep people engaged with you for longer periods. One way to analyze where you are is to get personal with your customers and ask them why they are staying or not staying with you.

    Good luck in your business,

    Steve
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  • Profile picture of the author tunydaniel
    hmm . Maybe you´re payment provider has such a data?
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