The Most Important Metric for Sales Leaders in Subscription Businesses to Track and Use to Drive Revenue Growth
Subscription businesses that charge customers monthly for using their offerings are expanding rapidly in response to consumers’ and b-to-b buyers’ desire to try a product and walk away easily if they’re not achieving the expected value. However, the subscription-based business model puts tremendous pressure on sales organizations to facilitate a seamless transition between the buyer and customer journey and ensure customers are seeing the value they were promised during their evaluation. Many sales leaders are drowning in data and struggling to figure out what key metrics they should track to reveal their progress in growing subscription revenue. One powerful, simple metric enables sales leaders to pull the right levers to grow revenue: the ratio of customer lifetime value (LTV) to customer acquisition cost (CAC).
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