The Ultimate Guide to SaaS Metrics
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.
