What are SaaS metrics?
SaaS metrics are key performance indicators (KPIs) that SaaS companies use to track and measure the health, growth, and success of their business. These metrics provide insights into various aspects of the business, such as customer acquisition, retention, revenue, and profitability. By monitoring these metrics, SaaS companies can make data-driven decisions to optimize their operations, product offerings, and marketing strategies.
Common SaaS Metrics:
- ARR (Annual Recurring Revenue): A measure of the predictable revenue generated from subscriptions on an annual basis.
- MRR (Monthly Recurring Revenue): Similar to ARR, but tracks revenue on a monthly basis.
Churn Rate: The percentage of customers who cancel their subscriptions over a specific period. - CAC (Customer Acquisition Cost): The total cost of acquiring a new customer, including marketing and sales expenses.
- CLTV (Customer Lifetime Value): The total revenue a customer is expected to generate over their lifetime with the company.
- NRR (Net Revenue Retention): The percentage of recurring revenue retained from existing customers, accounting for upgrades, downgrades, and churn.
