Mask: Upfront setup fees drove Infusionsoft's monthly churn from 8% to 2%
Clate Mask · 637: Reason Infusionsoft Didn't IPO, Passes $100M ARR, $125M Raised, Helping 45,000 SMB's With Marketing and Sales Automation with CEO Clate Mask · Apr 22, 2017 · at 18:50
Infusionsoft CEO Clate Mask confirms to Nathan Latka that introducing mandatory upfront setup fees drove their monthly gross churn drop from 8% to 2%.
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“Would you directly associate that upfront fee with being the number one mover of your churn going from eight to two percent? Absolutely.”
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Mask: Infusionsoft improved its LTV:CAC ratio while expanding downmarket
“The LTV CAC is stronger than it was before, which is really great because a lot of times when you serve a less sophisticated customer, your CAC is going to go up or your LTV will go down. That hasn't been the case. We've got a better ratio than we had before.”
Mask: Infusionsoft lowered LTV by introducing a $99 price point
“Our LTV has gone down as well because we're bringing on a custom, because we now have a 99 dollar price point and customers who can come in without paying, you know, 250 or 300 dollars out the gate.”