: SaaS Metrics : #SaaSChats Recap

We brought back our monthly #SaaSChats, a one-hour chat that happens on Twitter, and we talked SaaS metrics with the help of Patrick Campbell from ProfitWell. We were also joined by Bryan Haralovich of Welch LLP and Alex Tong of Information Venture Partners.

During the chat, we talked about which metrics a startup founder needs to measure, why they matter and how they can help you make better decisions inside of your startup. We’ll also talk about which metrics matter to investors and how you can communicate those effectively.

Here’s a recap of the questions that were posed during #SaaSChats as well as a few response highlights.

Q1 Let’s start with the basics: what are some of the SaaS metrics founders should track from day one?

Q2 How often should a founder be looking at the numbers in their SaaS business and is this something they can delegate away?

Q3 How can SaaS startups use metrics in each of their company’s departments to inform decisions? I.e.: customer success, product, sales or marketing?

Q4 Which tools are helpful to track SaaS metrics?

Q5 Let’s talk about CHURN! What’s an ideal churn rate for SaaS companies and what are some ways to keep your churn rate low?

Q6 When it comes to CAC (customer acquisition cost), what is the average cost to acquire a customer and how can you get creative to acquire customers for less?

Q7 MRR vs ARR. Which is the better SaaS metric for measuring the overall success of a startup? When is it better to use MRR vs ARR?

Q8 Let’s talk SaaS product pricing. How can you use metrics to help you set the price for your product and/or tweak the existing price point to increase your MRR/ARR?

Q9 What about product engagement? Should SaaS startups have a score to measure engagement on their product and if so, what are some of the metrics that matter here?

Q10 How can you creatively display/communicate your SaaS metrics both internally to inspire your team and externally to investors, service providers, shareholders, etc.?

Q11 Last question! Outside of the traditional SaaS metrics, what are some of the fun benchmarks you measure inside of your own company or that you’ve seen others use?

See you next month for our next #SaaSChats event!

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