SaaS Metrics

The most important SaaS metrics and KPIs. Learn about what metrics and KPIs are best for you, vote, and contribute your own.

Subscribers

The Subscribers metric counts the number of paid or non-paid users who have periodic access to a product or service. Most often, this metric refers to a subscription-based business model, for example, newspapers, magazines, phone, internet service, the use of software-as-a-service (SaaS), or even access to seasonal theatre performance.

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The Rule of 40

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.

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Time to Value

Time to Value (TTV) measures the duration between when a user selects your product and the moment they initially realize the value of your product. Value usually means that the setup process is completed and the first usage of the product is successful.

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Total Addressable Market

Total Addressable Market (TAM) is a measure of the revenue opportunity of capturing 100% of the market for a product or service.

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Total Funding

Total Funding measures the total amount of venture capital funding raised by a company.

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Trial Conversion Rate

Trial Conversion Rate measures the percentage of users that have converted to a paid account from a trial period. Commonly referred to as Free Trial to Paid Conversion Rate, this metric indicates product value by measuring the number of users that find enough value in the product to pay for it. Trial Conversion Rates vary based on the type of trial you use. In SaaS, the standard practice is to either have a freemium product or a free trial period that usually spans a couple weeks.

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True Trials

A True Trial is defined as a user who starts a trial and comes back a second time within the first 7 days. The True Trials metric is meaningful for any software company that offers prospects a trial before they choose to buy. Prospects who sign in twice within the first 7 day period are more likely to become paying customers. Tracking True Trials enables you to assess lead quality, product engagement, and probability of a win much earlier than only looking at Win Rate.

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Viral Coefficient

Viral coefficient is the number of new users or customers the average customer generates. This can be through a formal business referrals program or simply through sharing and inviting others customers to use your product - but the key is that these users also convert to paying customers or users.

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Weekly Active Accounts

Weekly Active Accounts measures the number of unique accounts with at least one user who has interacted with an application or platform in a week. An active account may include one or more users, who may each have varying degrees of activity.

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Weekly Active Users

Weekly Active Users are the number of unique users of an application or platform that have interacted with it in a week. This metric is used to track weekly user engagement. Weekly Active Users includes both new users and existing users who have interacted with the application.

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Weighted ACV

Weighted Annual Contract Value (WACV) calculates the average contract dollar value with a weighted average proportional to the value of the contract. Essentially, higher value contracts are assigned more importance when calculating the total average contract value of a business. This approach is helpful to companies that have widely varying customer concentration by accurately calculating an ACV that is not skewed by contracts with low dollar value.

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Won Customers

Won Customers is the count of new accounts that are “Closed Won”. It is a measure of success of the Sales, Marketing, and increasingly Product teams. "Closed Won" is the stage at which a prospect has signed or electronically accepted a contract and is now considered a customer. Counter to Won Opportunities, Won Customers only applies to the Account once, whereas you can have multiple Opportunities per Account.

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