Understanding SaaS Metrics

#StartupBasics | Series by Insights Alley (Hosted by Arun Verma)

S01E07 -Understanding SaaS Metrics

Guest: Nick Franklin, Founder & CEO at ChartMogul

 

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In this episode of #StartupBasics, we discussed:

– The Story of Nick from his early career to Zendesk & now ChartMogul.

– Metrics to track in very early stage of your startup: How many people are signing up? Are they logging in? Are they coming back to the product? How often they login back?

– Metrics vs KPI

– Different type of metrics buckets reflecting different parts of your business:

  • Product Usage Metrics
  • SaaS Business Metrics
  • Financial/Accounting

– The upside of using subscription analytics tools for your SaaS Business metrics

– MRR & ARR:

  • Understanding MRR & ARR in detail
  • Importance of MRR
  • Two ways to think of ARR
  • How to calculate it?

– The number of Customers/Accounts & ARPA/ARPU:

  • How to calculate it?
  • It’s significance
  • How segmentation brings more meaning to your metrics

– CAC:
The best customer acquisition method is by word of mouth

– LTV:

  • Understanding Customer Lifetime Value
  • How to calculate it?

– Customer Lifetime Period & Payback Period

– Churn:

  • Understanding Churn & Churn Rate
  • Types of Churn

– Benchmark for these Metrics
Matrix Partner’s Annual Private SaaS Company Survey

– CAC to LTV Ratio:
David Skok’s Lecture on CAC to LTV Ratio

– Health & Sustainability of your SaaS Business

  • Cash in the Bank, Burn Rate and Runway
  • Churn Rate & SaaS ceiling

– Overlooked Metrics

– The relation between SaaS business metrics & product usage metrics.

 

Resources mentioned:

 

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