To measure the success of your SaaS business, you'll need to track key performance indicators (KPIs) such as customer acquisition costs, revenue growth rates, and churn rates.
Key metrics to monitor include Monthly Recurring Revenue (MRR), Customer Lifetime Value (CLV), Churn Rate, Customer Acquisition Cost (CAC), and Net Promoter Score (NPS). Regularly analyzing these KPIs helps you understand business health and areas for improvement.
MRR measures the predictable revenue generated from subscriptions each month, providing insights into revenue growth and stability. CLV estimates the total revenue a customer will generate over their lifetime with your company, guiding customer acquisition and retention efforts.
Churn rate measures the percentage of customers who cancel their subscriptions within a given period, indicating customer satisfaction and product-market fit. CAC represents the cost of acquiring a new customer, helping assess the effectiveness of marketing and sales efforts.
NPS measures customer satisfaction and loyalty based on their likelihood to recommend your product or service to others, reflecting overall brand perception and customer experience.
