Key SaaS Metrics That Matter for Your Business Growth

One accurate measurement is worth a thousand expert opinions.

SaaS is evolving…

SaaS is gaining popularity…

SaaS is changing the way people do business…

You have landed on our website which means you have something to do

with SaaS. Probably you are a CEO or marketing manager of a SaaS

company and you want to get to grips with SaaS metrics like the back of

your hand.

What to expect from our SaaS-focused content? You will learn what makes

the SaaS business model different from the traditional one, how to

calculate SaaS metrics, why tracking them is important for your business

growth and what SaaS KPIs you should care about the most.

Stay with us to stay in the loop and let’s get started.

 

saas metrics

SaaS-y trends: Not the same as in other industries

The subscription model has conquered the SaaS industry and nowadays

almost all SaaS companies operate with a subscription-based pricing

model. In the case of a typical non-SaaS business, a customer pays a

one-time fee and gets the product forever. 

Another thing that makes SaaS stand out – it takes time to get your

investment and cash money back. And the faster you want to grow, the

bigger your losses will be in the beginning. Sounds paradoxical. Let’s be

clear. You invested $2500 and acquired 5 customers, your CAC is $500.

Your customers subscribed to a $90 monthly plan and will pay back that

$500 in 5.5 months, not immediately. So you will recover your CAC

gradually and after 5.5 months, the longer your customer continues his

plan, the more your net profit will be.

In the SaaS industry, a customer buys a subscription package, not a

product. And that product (software) is available as long as the customer

continues to pay the subscription fee. Of course, you can find software for

which you pay a fixed price and use it for a lifetime but it’s more an

exception than a rule.

-What are SaaS metrics and why is it worth tracking them?
-They’re proof of your SaaS business health. Read further:
we have more for you!

At first glance MRR, ARR, CAC, LTV and stuff like that seem a bunch of

letters and acronyms but then you discover the power inside them. 

 

Your recurring revenue is reflected in just 3 letters – MRR (or ARR), your main

marketing spendings are embodied in another 3 letters – CAC or you can

measure the profitability of your customers with 1 more acronym – CLV.

 

That’s not the end as metrics like NPS, LVR and Churn rate and others are

not less valuable to measure and analyze.

You know your CLV, you know how much to invest in customer acquisition.
Your NPS is a negative number, that means your customers have a painful

experience with you (hope that’s not your case).


Your Churn rate is low, you know your product and team perform great

(hope that’s your case).


And the list goes on…

 

With key SaaS KPIs at your disposal, data tells you what’s your current

the situation, what’s missing and what to do next – that’s when you should

make your SaaS-saving or SaaS-improving decisions.

If

1. Your LTV to CAC ratio is less than 3
Or

2. You recover your CAC in more than 12 months

Then

YOU NEED TO MAKE IMPROVEMENTS!

Without further ado, let’s move forward to discovering every SaaS metric

separately. From each of our publication, you’ll know

-the definition of that particular metric,
-how to measure it and what’s the formula,
-how to improve its performance with practical tips,
-other sections relevant only to a separate metric…

 

We are sure you’ll walk away with a bundle of SaaS knowledge and a

sense of spending quality time.

 

Happy reading!

SaaS ARPA (Average Revenue Per Account) Guide

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SaaS MRR (Monthly Recurring Revenue) Guide

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SaaS ARR (Annual Recurring Revenue) Guide

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SaaS CAC (Customer Acquisition Cost) Guide

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value customers users viewer

SaaS LTV (Customer Lifetime Value) Guide

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SaaS NPS (Net Promoter Score) Guide

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SaaS Churn Rate Guide

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SaaS ARPA (Average Revenue Per Account) Guide

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SaaS MRR (Monthly Recurring Revenue) Guide

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SaaS ARR (Annual Recurring Revenue) Guide

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SaaS CAC (Customer Acquisition Cost) Guide

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SaaS Churn Rate Guide

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value customers users viewer

SaaS LTV (Customer Lifetime Value) Guide

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SaaS NPS (Net Promoter Score) Guide

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