Meticulous measurement of the SaaS metrics core to business growth
A SaaS (software as a service) business faces a unique set of challenges in growing their business and acquiring new customers. As a subscription based business, SaaS companies need to pay ultra close attention to metrics that show their ability to generate recurring revenue, retain customers, and to attract customers at a reasonable acquisition cost. These SaaS metrics and KPIs are common examples of the top metrics used by SaaS companies.
Net monthly recurring revenue refers to the monthly value of newly acquired accounts to your sales system and monthly added value to current accounts, minus the value lost from closed or reduced accounts.
Gives investors, founders, and team members an immediate view of a SaaS company’s growth efficiency.
Measure a customer base’s willingness to promote a product or service to colleagues and friends.
Measures the gross profit generated from a customer over the entire time they do business with a company.
Measures the relationship between the lifetime value of a customer, and the cost of acquiring that customer.
Measures how quickly a startup is using up its venture capital, considering the revenue the business is generating.
Measures the relationship between the lifetime value of a customer and the cost of acquiring that customer.
Measures the monetary value of a customer over the entire time they do business with a company.
Measures the rate at which a subscription based business can expand its monthly recurring revenue by expanding revenue among current accounts (‘upselling’).
Measures the revenue a company is generating from its subscription accounts on a monthly basis.
Measures the rate at which a subscription based company is losing its customers due to account cancellations or non-renewal of subscriptions. The compliment of 'Churn Rate’ is 'Retention Rate’.
Measures the rate at which a subscription based company holds on to its customers. The compliment of 'Retention Rate' is 'Attrition' or 'Churn Rate'.