What does Software as a Service (SaaS) mean?

One of the cloud computing models in which the application is stored and executed on the service provider's computers and is made available to users via the Internet. This eliminates the need to install and run the program on the client's computer. The SaaS model shifts installation, management, upgrade and technical support responsibilities from the customer to the service provider. As a result, the user gives control over the provider's software and the obligation to ensure its continuity.

What does Customer Acquisition Cost (CAC) mean?

This is the price incurred when acquiring one customer. This involves persuading the customer to buy our product or service. It is the sum of all marketing, sales and operating costs per customer. It’s one of the most important business indicators in the SaaS model. The most important role of CAC is to calculate return of investment per single customer. ROI calculation allows you to estimate how much resources you can spend to attract customers.

What is Average Revenue Per Account (ARPA)?

It is revenue generated per account, calculated on monthly or yearly basis (here monthly). Calculated by dividing total income generated by customers (in given period) by number of these customers. This metrics is critical for business since it allows to easily compare products in terms of revenue generation.

What does Lifetime Value (LTV) mean?

Lifetime value means the forecast value of the profit from the client throughout his relationship with the product. LTV can also be defined as the value of future cash flows in customer relationships. Lifetime Value affects the company's focus on long-term, healthy relationship with the client. The customer's life cycle in the company allows you to easily calculate the limit on advertising expenses and marketing costs for acquiring a single new customer.

What is LTV:CAC ratio?

LTV:CAC stands for the ratio of two components: Customer Life Value and Customer Acquisition Costs. One of the most important indicators in Software as a Service subscription models. Thanks to LTV:CAC Ratio, we are able to determine how much we can spend on acquiring a single customer. Perfect ratio for LTV:CAC should be at least 3:1.

What is Churn?

The Churn Rate in the SaaS subscription model is a measure of the number of people who resign from a service or product at a given time. This is one of the indicators determining customer satisfaction with the service and how long it will use this service. The opt-out ratio is one of the elements of LTV value modeling, it is used to measure Return of Investment. Churn is one of the indicators inhibiting the company's growth. The lower the churn, the better for your business. For many businesses, the SaaS churn model should be no more than 3-5%.

What Marketing & Sales budget Per Month consist of?

I's a component of the costs to sell and promote your products or services. This also includes costs related to sales and sales employees, promotional costs, marketing communication, e-commerce store, online and offline advertising.

What does Acquired Customers Per Month (ACPM) mean?

The number of users who joined your service or purchased your product in a single calendar month.

How come it’s a free service?

Saasframes.com is a website for people who are just starting their adventure with SaaS business. We earn money by offering our paid services eg. Software Development, UX/UI Design for businesses in the early stage of the project. We have a special offer just for people using Saasframes.com

Who is behind SaaS Frames project?

We are Ruby Logic, not only an IT company, but also a group of specialists who know the ins and outs of production inside out. Our goal is to provide high quality software in a transparent and an understandable form of accounting for effects.
By choosing Ruby Logic services, you can be sure that every issue will be well understood and the solution will be properly designed and implemented.

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