Common SaaS metrics include monthly recurring revenue (MRR), customer lifetime value (CLV), and churn rate.
MRR tracks the 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. These metrics are essential for understanding the health and performance of your SaaS business and guiding strategic decision-making. Additionally, other metrics such as customer acquisition cost (CAC), customer retention rate, and expansion revenue can provide further insights into different aspects of your business, helping you identify opportunities for growth and optimization.
Related Book: From Code to Recurring Revenue - Blueprint to SaaS Development
