recurring revenue

Originally published by IMA on May 30, 2015.

Acquiring new customers isn’t just difficult and competitive for many agencies, SaaS organizations, and professional services providers. It’s also incredibly expensive, and probably not the smartest place to invest your energy. Getting into a pattern of relying on new revenue, especially in a recurring revenue business model, isn’t just inefficient. It could actually lead your organization to failure.

Venture capitalist David Skok has stated that the second most common reason startups go under is a failure to “monetize” their existing customers. This requires organizations to master customer relationship management, customer referrals, and build loyalty-based relationships. Even more commonly, too many organizations don’t succeed at the most basic calculation of all: the cost of customer acquisition (CoCA).

Learn more about how customer retention can impact your CoCA.

 

On behalf of the entire team at Inbound Marketing Agents, we say "Thank you!" for reading and sharing this blog. 

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