6 SaaS metrics you should track📝

1. Number of active users (NAU)

A number of people use your app regularly. Customers with consistent usage habits stay longer and are more likely candidates for upselling than those who only hop into your product every once in a while.

2. Churn rate

Customer churn rate is the measurement of how many customers you lose within a specific time period. Most SaaS companies find it more helpful to measure revenue churn over customer churn, as the former method provides a better indicator of the business’ health.

3. Monthly recurring revenue (MRR)

Recurring revenue is the amount that your customers spend on your SaaS product on a continuous basis. It is extremely important as a SaaS metric because SaaS products are often offered as a subscription and on various tiers.

4. Customer lifetime value

CLV shows what your average customer is worth. For early startups, it represents the value of your company to investors. Since most SaaS businesses operate with subscription-based models, each renewal increases the lifetime value per customer

5. Conversion rate

Your conversion rate indicates how many of your free trial or freemium subscribers sign up for paid services. For example, if you had 50 conversions from 1,000 interactions, your conversion rate would be 5%, since 50 ÷ 1,000 = 5%.

6. Customer acquisition cost

CAC measures the amount you spend on sales, marketing, and other associated costs to acquire a new customer. Sometimes it takes months or even years to earn back the money invested in bringing a customer in.

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