Core SaaS metrics that matter most
Most important
- MRR
- M/M growth rate
Three high / three low
Lower these metrics
-
CAC (cost to acquire a customer) (marketing costs / customers)
-
Sales effort (length of sales / effort required to close deals)
-
Churn (percentage of people of cancelling per month)
Gross MRR that cancelled / Starting MRR
- Keep it under 10%
Calculate plateau number?
Raise these metrics
-
Annual contract value (ACV) more valuable than LTV
-
Expansion revenue
Pay more after getting more value from product
- More pricing tiers
- Value metrics / feature gating
- Referalls
How many new customers are referred by existing ones
- Ask how a customer heard about you at point of signup