6 min read
Monthly vs annual billing: how big should your annual plan discount be?
How big an annual plan discount should be: compare it with what a monthly customer really pays in a year given your churn. Formula, table and example.
Blog
RSS feedPractical articles on statistics, A/B testing and data-driven decisions for product managers and marketers.
7 min read
Bootstrapped startup or investor money? Bootstrapping vs venture capital for your product
Bootstrapped startup or VC? Work out what an investor needs your company to become, compare it with your market and decide bootstrapping vs VC with numbers.
8 min read
How to calculate market size: bottom-up market sizing for a niche B2B product, with a worked example
How to calculate market size for a niche B2B product: count the businesses that fit, multiply by your price, then compare with the customers you need.
9 min read
Cohort analysis: what it is, with a worked example cohort table
What is cohort analysis? A worked cohort analysis example: build a cohort table, read cohort retention by rows, columns and diagonals, and average it right.
7 min read
Customer concentration: when one big customer becomes a risk
Customer concentration risk in a small SaaS: measure one customer’s share of MRR, stress-test losing them and shape a big deal so it stays safe.
8 min read
DAU/MAU ratio: how to calculate stickiness and what a good number is
The DAU/MAU ratio explained: the formula, what a good stickiness number is, a worked example on real-looking data and why a weekly product needs WAU/MAU.
8 min read
Funnel analysis: how to build a conversion funnel and find where users drop off
A practical guide to funnel analysis: define the funnel, read step conversions, split the weakest step and size the fix, with a worked example.
8 min read
SaaS valuation multiples: how much is a small SaaS business worth? Due diligence and earn-outs
SaaS valuation multiples for a small SaaS business: profit and ARR multiples, what moves them, what buyers check in due diligence and how to weigh an earn-out.
7 min read
How to calculate churn rate and MRR from one month of events
How to calculate churn rate and MRR from one month of subscription events: the churn rate formula, MRR churn, upgrades and annual plans, step by step.
9 min read
Retention rate formula: how to calculate retention rate, three methods and a worked example
The retention rate formula and how to calculate retention rate: day-N vs rolling vs bracket, customer retention rate, and a worked example on ten users.
7 min read
SaaS pricing: how to price a SaaS product, starting from what the workaround costs
SaaS pricing for your first customers: price a SaaS product from what their workaround costs, pick the unit you charge for and check the price three ways.
9 min read
LTV:CAC: how to calculate the LTV to CAC ratio by cohort, and why 3:1 is not a law
LTV:CAC compares customer lifetime value with customer acquisition cost. The LTV to CAC ratio formula, a cohort example, the 3:1 benchmark, five traps.