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I Was Wrong. NPS is A Great Core Metric.

SaaStr

It created a lot of discussions and was more controversial then — that NPS was a great core metric. Back then, I wrote that when I was a SaaS founder, I thought Net Promoter Score (“NPS”) was a somewhat dumb, Big Company metric. NPS isn’t tied to upsells, churn, or revenue. I wanted to see the future.

Metrics 280
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Most SaaS Metrics Really Only Work if You Have 75%+ Gross Margins and 100%+ NRR

SaaStr

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., They don’t.

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Measure Your Churn. But What’s Even More Important is to Measure Your “Almost Churn”. 5 Tricks to Help You Here.

SaaStr

Churn is a paramount topic in SaaS , as we all know. If every dollar of ARR is worth $6+ in the long term, including upsells and second order revenue … then of course, by the same token, for every dollar of ARR that churns … you’re losing $6 of notional ARR. But maybe even more important is measuring Almost Churn.

Churn 245
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5 Metrics Every SaaS Company Should Care About In Any Market Environment with Salesforce Ventures Investor Jessica Bartos (Video)

SaaStr

In this week’s Workshop Wednesday , Salesforce Ventures Investor, Jessica Bartos, shares the 5 metrics every SaaS company should care about in any market environment, especially the one we’re currently in. Growth Is Still Number One Growth is still the number one metric, but it’s not the only one. They’re simple but not always easy.

Metrics 214
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A Guide to Customer Retention: Importance, Strategies & Metrics

User Pilot

You will also learn how to build a retention strategy, what metrics to track, and 10 bulletproof retention tactics for SaaS companies. Key metrics to measure customer retention include customer retention rate , customer churn rate , customer acquisition cost, and customer effort score. Customer retention metrics: Retention rate.

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Metrics That Matter in 2023: My KiwiSaaS Presentation Slides

Kellblog

Just a quick post to share the slides from the presentation I gave today at the KiwiSaaS conference to discuss the SaaS metrics that matter in 2023 and 2024. This includes an explanation of why I excluded (what I view as old school) churn, lifetime value (LTV) and LTV/CAC analysis from those metrics.

Metrics 123
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The Most Important SaaS Metrics In 2023 with monday.com CEOs and Co-Founders Eran Zinman and Roy Mann, and SaaStr Founder Jason Lemkin

SaaStr

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? Then the Boom happened, and everyone could justify insane investments, and it warped everything.

Metrics 196