Saas Metrics

I have discussed in the past the past the benefits of SaaS and specifically recurring revenue model. The main benefit of the recurring revenue model is the predictability of revenue, customer acquisition payback, customer lifetime value (CLTV), and the ability to optimize…

As discussed earlier the two most important metrics of a SaaS company are growth rate and retention rate. Wall Street understands this and considers retention as the second most important factor in valuing a SaaS company (first is growth rate). I would take it even further and argue…

Now that we’ve talked about why SaaS is a beautiful business model, I’d like to give some guidance and tips to help do it right. Of course there is no “one size fits all” answer to how to do SaaS, but there are many things which are common across companies and many things we see that seem to work.