7 SaaS metrics you need to know for your Business
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Monthly Recurring Revenue (MRR)
MRR is the predictable revenue generated by a SaaS business each month from its subscribers. This metric is important for measuring revenue growth, identifying trends, and forecasting future revenue.
Churn Rate
The churn rate measures the percentage of customers who cancel their subscriptions within a given time frame. A high churn rate can indicate problems with product-market fit, customer service, or pricing, and can negatively impact revenue growth.
Customer Acquisition Cost (CAC)
CAC is the cost of acquiring a new customer. This metric is important for understanding the effectiveness of marketing and sales efforts and can help identify areas where the business can improve efficiency.
Lifetime Value (LTV)
LTV is the total value a customer brings to the business over the course of their subscription. This metric is important for understanding the long-term revenue potential of a customer and can inform decisions about customer acquisition, retention, and pricing.
Gross Margins
Gross margins measure the percentage of revenue that remains after subtracting the cost of goods sold. This metric is important for understanding the profitability of a SaaS business and can inform decisions around pricing and cost management.
Monthly Active Users (MAU)
MAU is the number of unique users who engage with the product in a given month. This metric is important for understanding product usage, identifying trends, and tracking user engagement.
Net Promoter Score
NPS measures customer satisfaction, and loyalty by asking customers how likely they are to recommend the product to others. This is important for understanding customer sentiment and identifying areas for improvement in the product and customer experience.
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