[Infographic] Are you measuring your SaaS revenue with the right metrics?

To calculate the revenue of your SaaS company, make sure you’re using the right SaaS metrics for the job!

Measuring the revenue of a web product is a modern nightmare. Whether you are part of a startup on its early stages, or a SaaS company already with a product on the market, knowing which business metrics to analyze between a bunch of acronyms is a real challenge.

“In the SaaS world, there are a few key variables that make a big difference to future results” — David Skok, General Partner @ Matrix Partners (click to tweet)

Calculate your revenue with reliable data

Before taking a deep dive into the vast ocean of revenue metrics, the right equipment is needed. All the metrics anyone intend to analyze must come from a reliable source. Even if a company is using the perfect sales revenue formula, it still needs the right information to fill in the gaps.

In other words, powerful CRM and behavioral analytics tools are needed in order to acquire credible data for measuring revenue. Only with that it’s possible to effectively generate information enough to help in your business’ decisions.

To improve even more the process of acquiring this data, companies often integrate analytics, CRM and CLM platforms to manage the customer lifecycle. With that, all data is automatically traded between platforms, eliminating the risk of human error.


The result is ready-to-analyze business metrics. Customer journey automation platforms, for instance, can be used to connect to CRM platforms, follow conversion funnels with behavioral analytics from customers, and analyze evolution graphs with all the data needed to effectively metrify results.

Vanity metrics vs actionable metrics

Seriously, one last advice before we start. Until this point, you’ve probably heard about vanity metrics. Mostly disseminated around the Internet as the “essential metrics” for any kind of company, vanity metrics are in fact a bunch of numbers from which isn’t possible to extract valuable insights.

The main problem of vanity metrics is that most of them rely on quantity over quality, such as likes on a Facebook post or general visits in a website or blog. On paper, it’s really beautiful to see all these numbers over a period of time — but it cannot help not even the greatest entrepreneur to take concrete decisions.

On the other hand, there’s the actionable metrics. These are the metrics all business should focus on: they’re indicators that can show the performance of strategies and targeted actions towards customers, from which companies can actually take decisions and determine its next steps.


On this blog post, we’ve selected actionable business metrics that should help you both metrify your company’s revenue, and take decisions to increase your revenue by developing your next strategies.

Read the full blog post by clicking here.
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