SaaS Metrics and KPIs
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.
Guide to KPIs & Metrics
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Net Monthly Recurring Revenue (MRR)
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.
Quick Ratio
Gives investors, founders, and team members an immediate view of a SaaS company’s growth efficiency.
Net Promoter Score (NPS)
Measure a customer base’s willingness to promote a product or service to colleagues and friends.
Customer Lifetime Value (LTV)
Measures the gross profit generated from a customer over the entire time they do business with a company.
Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC)
Measures the relationship between the lifetime value of a customer, and the cost of acquiring that customer.
Net Burn Rate
Measures how quickly a startup is using up its venture capital, considering the revenue the business is generating.
Customer Lifetime Value to Customer Acquisition Ratio (CLV:CAC)
Measures the relationship between the lifetime value of a customer and the cost of acquiring that customer.
Customer Lifetime Value (CLV or LTV)
Measures the monetary value of a customer over the entire time they do business with a company.
Monthly Recurring Revenue (MRR) Expansion Rate
Measures the rate at which a subscription based business can expand its monthly recurring revenue by expanding revenue among current accounts (‘upselling’).
Monthly Recurring Revenue (MRR)
Measures the revenue a company is generating from its subscription accounts on a monthly basis.
Customer Churn Rate
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’.
Customer 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'.
Viral Coefficient
A measure of how quickly and how widely a marketing message spreads online.
Guide to KPIs & Metrics
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