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The metrics measured by SaaS businesses [#ChartoftheDay]

Author's avatar By Robert Allen 25 Jul, 2016
Essential Essential topic

Does your SaaS business measure these key metrics?

New research from Totango reveals the metrics that are being tracked by most Saas businesses. Their survey of over 300 SaaS businesses found that whilst the vast majority measure basic metrics like churn and web visitors, surprisingly few measure customer retention cost. Retention cost is important for SaaS businesses, because churn rates make a huge difference to long-term profitability. It's good to see 80% of SaaS businesses measuring churn, as this is crucial to long growth, as this post on ideas to reduce SaaS churn shows. Really that figure should be closer to 100%. If you're not measuring churn then your setting yourself up to fail.

Metrics tracked by SaaS Companies

For reviewing benchmarks of actual performance there are some great compilations including these SaaS business metrics in an updated Google Sheet from Nathan Latka and these SaaS benchmarks from Insight Squared.

Author's avatar

By Robert Allen

Rob Allen is Marketing Manager for Numiko, a digital agency that design and build websites for purpose driven organisations, such as the Science Museum Group, Cancer Research UK, University of London and the Electoral Commission. Rob was blog editor at Smart Insights from 2015-2017. You can follow Rob on LinkedIn.

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Marketing a Saas business

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