In The Trenches Evaluating Customer Retention in Recurring Revenue Businesses: With Craig Zingerline
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Aug 14, 2025 Craig Zingerline, a seasoned entrepreneur and mentor in growth marketing and product strategy, shares insights into customer retention in recurring revenue businesses. He dives into the most telling customer retention metrics and the surprising implications of high retention scores. Zingerline discusses the importance of different churn types and the value of upselling strategies. He also compares transactional versus per-user revenue models, highlighting what founders should focus on for long-term business sustainability. A must-listen for anyone in the startup world!
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Use LTV To CAC As A First Filter
- Use the LTV:CAC ratio as a primary quick indicator to evaluate both acquisition efficiency and product value.
- Ensure you define CAC and LTV consistently and avoid fudging components like personnel costs.
Cohorts Reveal Hidden Unit Economics
- Cohort-based retention reveals seasonality and poor-fit acquisition channels that blended metrics hide.
- Track cohort CAC and cohort LTV, not just trailing blended averages.
Model LTV When Your History Is Short
- Build proxy LTV/retention models from early data when history is limited, but treat them cautiously.
- Use six months of behavior to forward-project 12–24 month scenarios and stress-test assumptions.