SAAS METRICS

Know everything about SaaS Metrics from the best posts contributed & curated by experts in the field.

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Expansion MRR is the additional MRR that you get from your existing customers.

Expansion MRR is generated when your customer upgrade from a lower-priced plan to a higher-priced plan, purchase additional or add-ons products and reactivating a canceled subscription.


1 year and 3 months ago

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Time to value is how long it takes a new customer to realize the value they're expecting from your product or service. Optimizing for this metric will help companies grow exponentially.

There are various types of time to value like Immediate Time to Value, Time to Basic Value (TTBV), Time to Exceed Value (TTEV)

1 year and 6 months ago

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The North Star Metric is the primary metric that a company uses for its growth and it helps everyone in a company focused on one goal.  North Star Metric must lead to revenue, reflect customer value and measure growth.

Startup investor Sean Ellis has coined the term "North Star metric".

1 year and 6 months ago

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Churn rate is a very important SaaS metric where customers pay on a recurring basis. If customer doesn't stay long enough to recover the customer acquisition cost (CAC) then it will be impossible to achieve growth.

The churn rate formula is: (Your lost customers ÷ Your total customers at the start of time period) x 100

1 year and 7 months ago

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The customer journey is the process by which a customer interacts with a product for achieving certain goals.

Understanding customer journey can help us address the customers’ pain points along the way,  leading to a  happy customer experience.

1 year and 7 months ago

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A product qualified lead (PQL) is a lead who has got some value while adopting your product during the free trial period and are more likely to convert.

PQL convert upwards of 20% as it's mostly interlink to experiencing an aha moment in your product.

1 year and 7 months ago

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The monthly recurring revenue (MRR) is the most critical metric SaaS businesses need to keep an eye on for survival. It helps you to improve constantly and depict a true potential of your business. MRR definiton, MRR calulations, MRR forumula, MRR tool, everything important related to monthly recurring revenue you should know is covered here.
1 year and 8 months ago

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If you are in a recurring billing business, you certainly know the situation. If you are not, you most likely want to migrate to a subscription system. So what are all these metrics? What does all that jargon mean? Here is an in-depth explanations for these SaaS / subscription / recurring business metrics. For now, let me give you a quick run down.
1 year and 8 months ago

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Billings is defined as revenue plus change in deferred revenue for a period.
1 year and 8 months ago

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What's the rule of 40? Growth rate + profit should be greater than or equal to 40%.
1 year and 8 months ago

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Here is a straightforward glossary of 17 essential SaaS metrics explained in clear, simple language, and the formulae as easy to understand.
1 year and 8 months ago

SAAS METRICS

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