The appeal of investing in Software as a Service (SaaS) companies lies in the abundant availability of data that can be utilized to gain a deeper understanding of a business.
The appeal of investing in Software as a Service (SaaS) companies lies in the abundant availability of data that can be utilized to gain a deeper understanding of a business. Let's delve into this topic by exploring 100 key SaaS metrics and benchmarks, as well as how to measure each one of them: | ||
1. Monthly Recurring Revenue (MRR): The total amount of predictable revenue that a company can expect to receive on a monthly basis. | ||
2.Annual Recurring Revenue (ARR): The total amount of predictable revenue that a company can expect to receive on an annual basis. | ||
3.Customer Acquisition Cost (CAC): The total cost of acquiring a new customer, including all aspects of marketing and sales. | ||
4.Churn Rate: The rate at which customers cancel their subscriptions. | ||
5.Customer Lifetime Value (CLTV): The total revenue that a company can expect to receive from a customer during their lifetime. | ||
6. Expansion MRR: Additional revenue from existing customers through upsells, cross-sells, or upgrades. | ||
7. Net Promoter Score (NPS): A measure of customer satisfaction and loyalty. | ||
8. Gross Margin: The difference between revenue and cost of goods sold, divided by revenue. | ||
9. Revenue Per User (RPU): The revenue generated per user or account. | ||
10. Retention Rate: The percentage of customers that continue to subscribe to a service over a given period. | ||
11. Active Users: The number of active users in a given period, usually measured daily (DAU) or monthly (MAU). | ||
12. Product Usage Metrics: These could include session duration, number of sessions per user, features used, etc. | ||
13. Sales Efficiency: A measure of the effectiveness of the sales process. | ||
14. Sales Cycle Length: The average amount of time it takes to close a deal. | ||
15. Lead Conversion Rate: The percentage of leads that become paying customers. | ||
16. Revenue Run Rate: The projection of future revenues based on the current revenue. | ||
17. Burn Rate: The rate at which the company is spending its venture capital. | ||
18. Free to Paid Conversion Rate: The percentage of free users who become paying customers. | ||
19. Customer Support Tickets: The number of customer support inquiries or issues raised. | ||
20. Customer Satisfaction Score (CSAT): A measure of how products and services meet or surpass customer expectations. | ||
21. Product-Qualified Leads (PQLs): Users who have reached a usage threshold that indicates a high likelihood of becoming a paying customer. | ||
22. Average Revenue Per User (ARPU): This is the total revenue divided by the number of users/subscribers. | ||
23. Logo Churn Rate: The rate at which the company loses customers, regardless of their size or value. | ||
24. Net Revenue Retention (NRR): Measures the revenue from existing customers by accounting for upgrades, downgrades, and churn. | ||
25. Onboarding Time: The time it takes for a new user to become fully operational with the software. | ||
26. Trial-to-Paid Conversion Rate: The percentage of trial users who convert to paid users. | ||
27. Cost Per Lead (CPL): The marketing cost to acquire a single lead. | ||
28. Sales Accepted Leads (SAL): The number of leads accepted by sales as being qualified prospects. | ||
29. Revenue Churn: The lost revenue due to customers cancelling or downgrading their subscriptions. | ||
30. Payback Period: The time it takes for a customer to generate enough net revenue to cover the cost of acquiring them. | ||
31. Qualified Lead Velocity Rate (LVR): The growth rate of qualified leads month over month. | ||
32. Days Sales Outstanding (DSO): Measures the average number of days it takes to collect payment after a sale has been made. | ||
33. Service Level Agreement (SLA) Performance: Measures how well a company’s service delivery meets its agreed-upon standards. | ||
34. Customer Health Score: A metric combining various data points to measure the overall health or satisfaction of the customer relationship. | ||
35. Upsell and Cross-Sell Rate: The rate at which existing customers purchase additional features or products. | ||
36. Customer Engagement Score: A measure of how engaged users are with your product based on their interactions and usage. | ||
37. Feature Adoption Rate: This measures how many customers are using a specific feature or set of features within your application. It can help identify the most and least valuable aspects of your product. | ||
38. Time to First Value (TTFV): The time it takes for a customer to realize value from your product after signup. This can be a strong indicator of long-term customer satisfaction and retention. | ||
39. API Call Volumes: For SaaS businesses with service-based architectures or that provide APIs for customers, tracking the volume of API calls can be indicative of system usage and load. | ||
40. Productivity Metrics: This could involve measures of how your product improves customer efficiency or reduces time spent on certain tasks. | ||
41. Customer Success Score: A composite measure of key performance indicators (KPIs) that indicate how successfully your customers are using your product. | ||
42. Product Return on Investment (ROI): Demonstrating the ROI of your product to customers can help in reducing churn and increasing satisfaction. | ||
43. Support Handling Time: The amount of time it takes for your team to handle customer support issues. | ||
44. Percentage of Self-Serve Customers: If your SaaS has both self-serve and sales-assisted models, this can be an important measure of where your signups are coming from. | ||
45. System Uptime/Reliability: The amount of time your service is available without interruption, often measured as a percentage of total time. | ||
46. Revenue Retention Rate: Measures the revenue from existing customers by accounting for upsells and cross-sells, even if the total number of customers decreases. | ||
47. Platform Usage Metrics: Specific actions users take on your platform, which might include button clicks, pages viewed, or actions completed. | ||
48. Pricing Page Conversion Rate: The percentage of visitors to your pricing page who become customers. | ||
49. Off-boarding Rate: Measures the rate at which users deactivate or close their accounts. | ||
50. Time between Upgrades: The time it takes for a customer to move from one subscription level to another. | ||
Enterprise SaaS (51 - 54) | ||
51. Enterprise Readiness Score: A measure of how prepared a product is to meet the stringent requirements of enterprise customers, including things like security, scalability, and customizability. | ||
52. Sales Team’s Win Rate: The percentage of sales opportunities that result in a won deal. In the enterprise space, where sales cycles are longer and deals are larger, this is particularly important. | ||
53. Contract Value: Enterprise contracts can vary greatly in terms of size and scope, making the total contract value an important metric. | ||
54. Integration Usage: Enterprises often need to integrate SaaS solutions with their existing tech stack. Measuring the usage of your integrations can provide valuable insight. | ||
SMB SaaS (55 - 57) | ||
55. Self-Serve Signups: SMBs often prefer self-service options, making this a key metric for SMB-focused SaaS. | ||
56. Time to Productivity: Given the limited resources at many SMBs, the time it takes for them to start gaining value from a SaaS product is critical. | ||
57. Net Dollar Retention (NDR): This measures the growth in recurring revenue from existing customers, including upsells, churn, contraction, and expansion. For SMB customers, who might frequently upgrade or downgrade, this metric is key. | ||
Consumer SaaS (58 - 62) | ||
58. Referral Rate: Given the importance of virality in consumer SaaS, the rate at which existing users are referring new ones can be a key growth indicator. | ||
59. App Store Ratings: For consumer SaaS products, particularly mobile apps, the ratings on app stores can be a key measure of user sentiment. | ||
60. Social Media Engagement: Measuring engagement on social media platforms can provide insights into brand recognition and reputation. | ||
61. Behavioral Metrics: This includes metrics like daily activity, user-generated content, interaction with other users, etc. | ||
62. Community Activity: If your consumer SaaS has a community component, tracking the activity levels and engagement within this community can be crucial. | ||
63. Customer Effort Score (CES): Measures how much effort a customer has to put into interacting with your product. | ||
64. Product Engagement Score: A composite score based on various usage metrics that indicate how engaged users are with your product. | ||
65. Revenue Per Employee: Useful for understanding productivity and efficiency within your organization. | ||
66. Qualified Marketing Traffic: The number of visitors to your site who fit your target demographic or customer persona. | ||
67. Product Performance Metrics: Depending on your product, specific performance metrics (like speed, efficiency, error rates) might be crucial. | ||
68. Percentage of Recurring Revenue: The percentage of your total revenue that comes from recurring subscriptions vs. one-time purchases or other sources. | ||
69. Partner/Channel Sales: If you utilize partner channels for sales, tracking their performance will be critical. | ||
70. Cohort Analysis: Measures behavior or performance of specific user cohorts over time. | ||
71. User Churn by Cohort: Similar to cohort analysis, but specifically looks at churn rates of different cohorts. | ||
72. Customer Feedback Score: Measures the feedback received from customers through various channels. | ||
73. Billing Metrics: This could include metrics related to billing operations, disputes, failed charges, etc. | ||
74. Technical Support Metrics: Measures the efficiency of your technical support, including resolution time, satisfaction score, etc. | ||
75. Sales Response Time: The time it takes for your sales team to respond to a new lead. | ||
76. Failed Payments: Tracking the number of failed payment transactions can reveal potential issues with your payment processor or customer payment methods. | ||
77. Trial Extension Requests: If you offer trials, tracking extension requests can offer insights into whether your trial length is sufficient. | ||
78. Customer References: The number of customers willing to act as references or case studies can be a powerful sales and marketing tool. | ||
79. Revenue by Region: Segmenting revenue geographically can reveal important trends and opportunities. | ||
80. Outbound Call Metrics: For sales teams making outbound calls, metrics like calls per rep, calls per conversion, etc. can be useful. | ||
81. Product Tutorial Completion Rate: If you provide tutorials or onboarding content, the completion rate can indicate their effectiveness. | ||
82. Platform-Specific Metrics: If your software is available on multiple platforms, you might track usage or revenue per platform. | ||
83. Sales by Product Line or Version: If you offer multiple products or versions, breaking down sales by these categories can offer insights. | ||
84. Account Expansion Potential: A measure of how much more a customer could spend based on their size, industry, or other factors. | ||
85. Customer Support Satisfaction: A measure of customer satisfaction with the support they’ve received. | ||
86. Customer Support Response Time: The average time it takes for a customer to receive a response to a support request. | ||
87. Product Backlog Burn Rate: For SaaS companies that are constantly developing, how quickly are you working through your product development backlog? | ||
88. User Session Length: How long, on average, are users actively using your software in a single session? | ||
89. Customer Goal Achievement: Are your customers achieving the goals they set out to reach by using your product? | ||
90. Product Training Attendance: If you offer product training or webinars, how many customers are participating? | ||
91. Billing Efficiency: The cost of maintaining your billing system relative to the revenue it processes. | ||
92. Renewal Rate: The percentage of customers who renew their contracts at the end of their term. | ||
93. Support Contact per User: The average number of support requests per user. High numbers can indicate usability issues. | ||
94. Revenue per Sales Rep: Measures productivity of your sales team. | ||
95. Upsell/Cross-sell Success Rate: The rate at which you’re able to sell additional products or services to existing customers. | ||
96. Cost of Service Delivery: The costs associated with delivering your service to customers, which impacts profitability. | ||
97. Discount Amount: The average amount of discount given to customers, which can impact revenue and profitability. | ||
98. Product Quality Metrics: Could be bugs reported, uptime/downtime ratio, or other measures of the technical quality of your product. | ||
99. Webinar or Event Attendance: If you host educational or promotional events, tracking attendance and the resulting conversions can be valuable. | ||
100. Percent of Revenue from Partnerships: If partnerships play a role in your business, how much revenue do they contribute? | ||
You might be wondering, 'Okay, how do I calculate each of these?' Well, my friend, let me introduce you to ChatGPT. | ||
Have fun! ;) |