Freemium · Metrics

What are the most valuable metrics SaaS companies should be measuring? Are there relevant benchmarks

Karl Laughton VP of Finance at Insightly

January 28th, 2015

I'm trying to optimize the Business Intelligence solutions my company is using and would like some feedback from the group around SaaS metrics and available benchmarks? What are the top 10 operating metrics a SaaS company should track? What's the best solution to track them? Are there any benchmarks to determine success criteria among SaaS companies relative to their own performance?

Thanks for your input!

Lalit Sarna Business & Technology Leader

January 28th, 2015

https://medium.com/@darnocks/if-you-are-going-to-read-one-intro-guide-to-saas-metrics-this-is-it-b0f480716a4e

Also search for Tomasz tunguz he is a data driven investor with a killer blog. He has written some awesome posts regarding SAAS metrics and business model

Tim Scott

January 28th, 2015

I don't know enough to give a good answer, but this guy has a lot of smart stuff to say about it:

Bob Binder Member of Technical Staff at Software Engineering Institute | Carnegie Mellon University

January 29th, 2015

One key metric is the ratio of customer acquisition costs to total subscription revenue. As there is typically a lot of churn, acquisition costs can easily outpace operation costs. It typically takes patient investors while you spend a lot of marketing money to build a subscription base. But after this starts to pay, you can't take your foot off the gas. If you have to spend a dollar to make a dollar, even if your total subscriber base is growing,you have a big problem.Salesforce is a case in point.

Dina Moskowitz

January 11th, 2016

David Skok is someone that I recommend SaaS founders and CFOs follow: 
http://www.forentrepreneurs.com/saas-metrics/
http://www.forentrepreneurs.com/saas-metrics-2/  

Dina Moskowitz

January 11th, 2016

Additionally, if you're leveraging or planning to leverage reseller partners, you will want to look at cost of reseller acquisition.  Its not the same analytic as CoCA because by acquiring one reseller you're potentially gaining access to between 5 and 50 customers.