Top KPI Metrics SaaS Companies Should Be Tracking

 The Software as a Service (SaaS) market is projected to rise from $152 billion in 2021 to $208 billion in 2023. Market competition has intensified as a result of the market's meteoric rise. 

To avoid falling into the lowest 25% of their industry, businesses with annual recurring revenue (ARR) of up to $10 million must expand by at least 20% yearly. 


Keep tabs on income, turnover, leads, and more to ensure your business is expanding at the correct rate. This blog will look at some of the most important SaaS and KPI metrics growth indicators your business should be tracking. 


In other words, what exactly are Saas metrics? 


Brands may evaluate and monitor their progress and performance using SaaS (Software-as-a-Service) analytics. Saas KPI metrics provide a means through which businesses may assess their progress, prepare for the future, and make course corrections as necessary.


What are the top KPIs for a SaaS company?


1.Customer Churn


If attracting new clients is your ultimate aim, then keeping the ones you already have is crucial. Your KPI dashboard should account for it. 


The percentage of customers who stop being active within a given time frame is known as the ‘customer churn rate.’ Customer retention over a set period is one of the most crucial indicators for monitoring the health of your business daily. 


If you measure churn on a monthly or quarterly basis, you should look at more nuanced metrics than just the number of customers who have left. Figure out who these churned customers are, what they do for a living, and any other distinguishing characteristics explaining why they decided not to renew. Sales, marketing, and customer support teams would all benefit from hearing this information.


2.Revenue Churn 


You can figure out how some customers affect your business more than others by measuring both customer churn and revenue churn as your Ksmart PI metrics. Let's say that some customers earn more than others. In that case, the customer churn rate and the churn rate could be very different, especially if the subscription price changes based on how many seats or users a client pays for. 


It's essential to keep track of how many customers and how much money you lose so you're not surprised when you have to report quarterly or annually in the KPI dashboard.


3. Customer Lifetime Value 


Customer Lifetime Value (CLV) is the average amount your customers spend with your company for their relationship with you. This KPI metric gives an accurate picture of a company's growth and can be explained in three steps: 


Divide one by the rate at which customers leave your business to find the rate at which customers stay with you. For instance, if your monthly churn rate is 1%, your customer lifetime rate would be 100 (1/0.01% = 100).


4. Customer Acquisition Cost (CAC)


Customer Acquisition Cost (CAC) shows precisely how much it costs to get new customers and how much value they bring to your business. When combined with CLV, this metric helps companies ensure that their business model is viable. 


To figure out CAC, divide the total amount you spend on sales and marketing (including staff) by the number of new customers you get during a specific time. For example, your CAC would be $1,000 if you spent $100,000 monthly and added 100 new customers. 


Getting customers should be the main goal of new businesses. CAC rates that are fully quantified help companies track their growth and determine how much their acquisition process is worth.


Closing Words-


How to Track Your Progress 


Any SaaS business that wants to grow its customer base and be successful needs to understand, measure, and improve the above KPI metrics. The changes don't even have to be very big. Even small changes can help keep your business in good shape.

 

Grow's interactive KPI dashboard can be your go-to tool to streamline the entire line of business operations. Read our Grow Reviews Cost & Features GetApp. 


To better understand what is KPI dashboard, connect with our dashboard experts now and turn the tables around with your relevant metrics. 

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