SaaS Metrics

A collection of articles and interactive models, to help you understand the metrics that matter to your SaaS business

01

Customer Churn

Quantify your customer retention

Many SaaS businesses devote a great deal of resource into winning new customers, but far less into maintaining their existing customer base.

Churn rates describe just how good a business is at keeping its existing customers, and is a crucial metric for any subscription-based SaaS.

learn more
01

Customer Churn

Quantify your customer retention

Many SaaS businesses devote a great deal of resource into winning new customers, but far less into maintaining their existing customer base.

Churn rates describe just how good a business is at keeping its existing customers, and is a crucial metric for any subscription-based SaaS.

learn more
02

Lifetime Value

Understand the true value of a customer

Lifetime value is a metric that really helps you get under the hood at looking how much a customer is worth.

It's a must-know if you're running any form of customer acquisition, as it helps you know how much you can afford to spend acquiring customers.

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02

Lifetime Value

Understand the true value of a customer

Lifetime value is a metric that really helps you get under the hood at looking how much a customer is worth.

It's a must-know if you're running any form of customer acquisition, as it helps you know how much you can afford to spend acquiring customers.

learn more
03

Customer Acquisition Cost

Measure your acquisition effectiveness

Customer acquisition cost (or CAC) is one of the most important metrics for SaaS business that do any form of paid customer acquisition.

Keeping track of your CAC lets you quantify the efficiency of your acquisition process, and is helpful for modelling out different growth scenarios in your SaaS.

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03

Customer Acquisition Cost

Measure your acquisition effectiveness

Customer acquisition cost (or CAC) is one of the most important metrics for SaaS business that do any form of paid customer acquisition.

Keeping track of your CAC lets you quantify the efficiency of your acquisition process, and is helpful for modelling out different growth scenarios in your SaaS.

learn more
04

Retention Margin

How much of your MRR is actually profit?

Most SaaS businesses focus heavily on MRR, but MRR alone doesn't tell you much. You need to combine it with a retention margin to understand how much of your MRR is actually profit that can be re-invested into your business.

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04

Retention Margin

How much of your MRR is actually profit?

Most SaaS businesses focus heavily on MRR, but MRR alone doesn't tell you much. You need to combine it with a retention margin to understand how much of your MRR is actually profit that can be re-invested into your business.

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05

Months to Recover CAC

How long is your business's cash cycle?

SaaS business's often make the mistake of over-simplifying customer acquisition. They assume that you can just keep spending as long as your CAC is below LTV.

In reality, every SaaS business needs time to recover its acquisition costs, and this is what months to recover CAC measures.

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05

Months to Recover CAC

How long is your business's cash cycle?

SaaS business's often make the mistake of over-simplifying customer acquisition. They assume that you can just keep spending as long as your CAC is below LTV.

In reality, every SaaS business needs time to recover its acquisition costs, and this is what months to recover CAC measures.

learn more
06

Net Revenue Retention

Understand how your revenue changes over time

Net Revenue Retention (NRR) is a measure of how effectively you're maintaining your revenue.

A good NRR is an indication that you're minimising churn from your existing customer base, and generating additional revenue from bringing in new customers.

learn more
06

Net Revenue Retention

Understand how your revenue changes over time

Net Revenue Retention (NRR) is a measure of how effectively you're maintaining your revenue.

A good NRR is an indication that you're minimising churn from your existing customer base, and generating additional revenue from bringing in new customers.

learn more
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