The Ultimate Guide to SaaS Metrics
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In broad terms, SaaS can be defined as access to the software when you don’t actually need to install it on your PC. Usually, it is a cloud solution used by modern businesses. With SaaS products, you can manage your workloads just by upgrading the subscription. Thus, the business flexibility and scalability rise a lot.
Modern marketing is highly data-driven, so identifying your brand’s key metrics is an essential step toward fueling growth.
SaaS metrics can be split according to their purpose:
Success metrics
- MRR, Monthly recurring revenue
- Annual Recurring Revenue (ARR)
- Churn rates
- Gross margin, COGS, EBITDA SM, Rule of 40
Sales metrics
- Total Contract Value (TCV), Annual Contract Value (ACV)
- Average Revenue per Account (ARPA)
- Customer acquisition cost (CAC)
- Customer Lifetime Value (LTV)
- LTV: CAC
- Win Rate
Customer success metrics
- Daily Active Users and Monthly Active Users (DAU and MAU)
- Net Promoter Score (NPS)
- Customer Satisfaction Score (CSAT)
- Upsell & Cross-sell Rate
- Referral Revenue and Referral ROI
For a SaaS business, there’s no single metric that you should care about more than others. It would be best if you had a broad, well-informed overview of your business’s performance so you can make the best decisions moving forwards. Jelvix helps SaaS clients identify points of growth and reduction marks with key metrics interpretation.
