There are many key performance indicators (KPIs) that are important to track for a SaaS (Software as a Service) business - here are a few for both B2B and B2C.
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There are many key performance indicators (KPIs) that are important to track for a SaaS (Software as a Service) business, but the specific KPIs that are most important will depend on your business goals and objectives. Here are some of the most common / most popular SaaS KPIs that you may want to consider tracking for a B2B (business-to-business) business:
Monthly Recurring Revenue (MRR): This is a measure of the recurring revenue that your business generates from subscriptions and other recurring sources. It is a key metric for SaaS businesses because it reflects the long-term value of your customer base.
Customer Acquisition Cost (CAC): This is the cost of acquiring a new customer, including marketing and sales expenses. It is important to track CAC because it helps you understand the efficiency of your customer acquisition efforts and the return on investment (ROI) of your marketing spend.
Lifetime Value (LTV): This is the estimated revenue that a customer will generate over the lifetime of their relationship with your business. It is important to track LTV because it helps you understand the long-term value of your customer base and the potential ROI of your customer acquisition efforts.
Customer Retention Rate (CRR): This is the percentage of customers that continue to use your service over time. It is important to track CRR because it helps you understand the stability and growth potential of your customer base.
Net Promoter Score (NPS): This is a measure of customer satisfaction and loyalty, calculated by asking customers how likely they are to recommend your service to others. It is important to track NPS because it helps you understand the overall health of your customer relationships and identify areas for improvement.
Churn Rate: This is the percentage of customers that cancel their subscriptions or stop using your service. It is important to track churn rate because it helps you understand the stability and growth potential of your customer base and identify areas for improvement.
Similarly, there are many key performance indicators (KPIs) that are important to track for a B2C (business-to-consumer) consumer social app:
Monthly Active Users (MAUs): This is the number of unique users who actively use your app each month. It is a key metric for social apps because it reflects the size and engagement of your user base.
Daily Active Users (DAUs): This is the number of unique users who actively use your app each day. It is important to track DAUs because it helps you understand the daily engagement of your user base and identify trends over time.
Retention Rate: This is the percentage of users who continue to use your app over time. It is important to track retention rate because it helps you understand the stability and growth potential of your user base.
User Acquisition Cost (UAC): This is the cost of acquiring a new user, including marketing and advertising expenses. It is important to track UAC because it helps you understand the efficiency of your user acquisition efforts and the return on investment (ROI) of your marketing spend.
Average Revenue per User (ARPU): This is the average amount of revenue that each user generates for your business. It is important to track ARPU because it helps you understand the value of your user base and the potential ROI of your user acquisition efforts.
Net Promoter Score (NPS): This is a measure of customer satisfaction and loyalty, calculated by asking users how likely they are to recommend your app to others. It is important to track NPS because it helps you understand the overall health of your user relationships and identify areas for improvement.
Once you identify which metrics are your "north-star" metrics, you have to implement analytics code into your platform to actually track the raw data used to calculate the above metrics. There are many platforms that are similar to Google Analytics and can be used to track various metrics related to website and app usage, marketing effectiveness, and customer behavior. Some examples of such platforms include:
Adobe Analytics: This is a comprehensive analytics platform that can be used to track and analyze data from a wide range of sources, including websites, apps, and marketing campaigns. It offers a range of features, including real-time tracking, audience segmentation, and conversion optimization.
Omniture: This is a cloud-based analytics platform that can be used to track and analyze data from websites, apps, and marketing campaigns. It offers a range of features, including real-time tracking, audience segmentation, and integrations with other marketing tools.
Mixpanel: This is a user analytics platform that can be used to track and analyze data from websites and apps. It offers a range of features, including real-time tracking, audience segmentation, and integrations with other marketing tools.
Heap: This is a cloud-based analytics platform that can be used to track and analyze data from websites and apps. It offers a range of features, including real-time tracking, audience segmentation, and integrations with other marketing tools.
Webtrends: This is a cloud-based analytics platform that can be used to track and analyze data from websites, apps, and marketing campaigns. It offers a range of features, including real-time tracking, audience segmentation, and integrations with other marketing tools.
Do you think I missed any? What are some other key SaaS metrics you think are important to track?