Baremetrics

SEPTEMBER 16, 2021

What LTV Metrics Show Why You Need to Measure LTV How You Can Measure LTV 6 Ways to Increase LTV for Online Stores 1. What LTV Metrics Show How do you know how much you earn per customer? LTV, or CLV, is the predicted amount a customer will spend on your product or service while they’re your customer.

Business 97

Business Social Media Marketplace as a Service Mobile 97

Kellblog

MARCH 29, 2023

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

Metrics Compensation Benchmarks Interviewing 123

SaaStr

AUGUST 7, 2023

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? So now we must be smarter about the most important SaaS metrics because they matter again.

Metrics 192

Metrics SaaS Sales Hiring Finance 192

Tom Tunguz

NOVEMBER 8, 2017

Founders often describe their unit economics in terms of their LTV/CAC ratio - the ratio of the Lifetime Value (LTV) of a customer to the Cost of Customer Acquisition (CAC). The LTV/CAC metric can be a powerful metric to unpack the health of the go-to-market team of a company, as Netsuite has shown.

Startup 185

Startup Forecasting Benchmarks Acquisition 185

ChurnZero

JUNE 9, 2023

8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective. To that end, here are the metrics you can use to get started.

Finance 98

Finance Metrics Customer Success Headcount 98

SaaS Metrics

SEPTEMBER 4, 2020

This is simply why the LTV or lifetime value of each customer needs to be greater than the CAC. A high LTV to CAC ratio implies that you’ve unlocked the right strategies for gaining and retaining customers, as well as strategies for growing without relying on external investments. Below, we look at how both of these metrics are.

Technology 96

Technology Acquisition Investment Metrics 96

Baremetrics

SEPTEMBER 26, 2021

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. But how many SaaS financial metrics are you really tracking? Most SaaS companies keep track of their customer acquisition cost (CAC) and customer lifetime value (LTV), but how about your CAC:LTV ratio or months to recover CAC?

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

User Pilot

MARCH 31, 2023

Analytics vs metrics – how do they differ from each other? Though both are important, analytics and metrics have distinct meanings and purposes in your data analytics process. In this article, we will go through analytics and metrics, their examples, and how you can analyze metrics to drive growth for your SaaS business.

Metrics 89

Metrics Customer Lifetime Value Data Analysis Engagement 89

Baremetrics

MAY 18, 2021

The Baremetrics customer segmentation tool helps you divide your customers by any metric you choose. But what are the top customer segmentation metrics? All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. 1 What are Customer Segmentation Metrics?

Metrics 99

Metrics Customer Lifetime Value Social Media Churn 99

User Pilot

FEBRUARY 26, 2024

Digital product metrics reveal how customers interact with your product. However, not all metrics are created equal. In this article, we hone in on the best metrics for product teams looking to drive product growth. We discuss 15 of the most important metrics and examine what to consider when choosing which metrics to track.

Metrics 87

Metrics Customer Lifetime Value Scale SaaS 87

Baremetrics

NOVEMBER 2, 2021

To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. What is a business metric? Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1. What is a business metric?

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

Software Platform Consulting

MAY 22, 2019

A couple of posts ago , I started a series on SaaS metrics unique to enterprise-driven B2B Networks. This time, let’s consider modifying the concept of LTV/CAC to include an enterprise’s ecosystem. Modified LTV/CAC. There’s already too much written about LTV/CAC (see here , here , here ), so I will be brief.

B2B 53

B2B Enterprise Metrics SaaS 53

Point Nine Land

NOVEMBER 10, 2020

If you’re an early-stage SaaS startup, still in the process of getting to Product/Market Fit, or doing your first experiments to attract and convert leads, you shouldn’t worry too much about customer lifetime value (LTV or CLTV) and related metrics. due to upgrades and downgrades), which gives you a better approximation of LTV.

Outsourced Development 97

Outsourced Development Customer Lifetime Value Churn Forecasting 97

The SaaS CFO

MAY 19, 2021

Almost everyone in SaaS has heard of the LTV to CAC ratio. And almost everyone has heard that we should target an LTV to CAC ratio of at least three. This was popularized (I believe) by the great content published by David Skok on SaaS metrics. But what does it mean to have an LTV […].

Metrics 52

Metrics SaaS Acquisition 52

Baremetrics

NOVEMBER 1, 2021

I like to say metrics of any sort are designed to answer one specific question about your business (I say this a lot , a lot a lot , maybe too often ), and you track them so that you like the answers. Well vanity metrics either don’t answer a question, don’t answer a needed question, or you can’t make positive changes to like the answer.

Payment Services 98

Payment Services Metrics Payments SaaS Payments 98

Baremetrics

JUNE 4, 2021

Baremetrics monitors 26 metrics, and on top of that offers 8 data boosting features so you can get more out of your metrics. If you want to see these metrics in action, you should sign up for the Baremetrics free trial. Annual Run Rate (ARR) This metric shows your current revenue projected out over 12 months.

Metrics 98

Metrics Payments SaaS Payments Payment Services 98

Kellblog

MARCH 17, 2022

Gross revenue retention rate, and why it’s gathering steam as an important metric. Net revenue retention (NRR), aka net dollar retention (NDR) for those who work only in dollars, which is probably the hottest SaaS metrics after ARR and ARR growth. Lifetime value (LTV), and its fairly severe limitations. LTV/CAC ratio.

Metrics 101

Metrics Customer Success SaaS Benchmarks 101

Kellblog

JUNE 13, 2023

Our topic was SaaS Metrics 101. Cover the metrics you are likely to be asked about as a SaaS entrepreneur: pick based not upon what I like, but on what I think you’re likely to get asked (e.g., LTV/CAC vs. NRR) I want to thank the audience for their attendance and engagement. Below are my Radia Accelerator slides.

Metrics 66

Metrics SaaS Interviewing Engagement 66

User Pilot

MAY 17, 2021

With so many product growth insights available to every product marketer, it’s sometimes hard to understand which metrics are relevant and which you should be tracking to measure the success of your product marketing. What is a Product Marketing KPI metric? Customer Journey KPIs to track: conversion rates and velocity metrics.

Product Marketing 95

Product Marketing Metrics Customer Lifetime Value Marketing 95

Tom Tunguz

JUNE 2, 2015

In a recent podcast , Ron Gill, the CFO of Netsuite - a $7B+ market cap company with about $600M in 2014 revenue, which provides ERP software to mid-market companies - articulated the importance of the Lifetime Value / Cost of Customer Acquisition (LTV/CAC) ratio for his company. In the 2009-2011 period, churn mitigation improved the LTV/CAC.

Startup 111

Startup SaaS Churn Engineering 111

User Pilot

AUGUST 15, 2021

A key reason why customer engagement metrics are important to successful SaaS businesses. In this article, we will walk you through ten important user engagement metrics to measure. What are customer engagement metrics? What customer engagement metrics are important to track? Let's get started!

Engagement 98

Engagement Metrics Scale SaaS 98

Kellblog

MAY 19, 2021

.” — Me responding to Ray calling me the Yoda of SaaS metrics. Just a quick post to highlight my recent appearance on the Metrics That Measure Up podcast, hosted by Ray Rike , founder and CEO of RevOps^2 , a firm focused on SaaS metrics and benchmarking. How metrics vary with scale. Rangaswami.

Metrics 89

Metrics Scale Benchmarks Acquisition 89

User Pilot

JANUARY 19, 2023

Do you want to measure your product’s success using quantitative metrics? You need to have a solid understanding of key quantitative metrics if you want to focus on and improve essential aspects of SaaS businesses like success measurement and customer retention. What are quantitative metrics? How do they differ?

Metrics 94

Metrics Customer Lifetime Value Retention Onboarding 94

Kellblog

MAY 16, 2020

Key SaaS Metrics with me. His goal was to do an interview that effectively functioned as a “SaaS Metrics 101” class and I think he succeeded. Here is a rough outline of the metrics we touched on in the 38-minute episode: ARR vs. ACV (annual recurring revenue vs. annual contract value). LTV/CAC (LTV = lifetime value).

Metrics 96

Metrics SaaS Technical Review Interviewing 96

OPEXEngine

MAY 22, 2020

Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

ChurnZero

FEBRUARY 14, 2023

Some Customer Success metrics are considered standard but there’s often more than meets the eye. Sales and marketing professionals that geek out on metrics can find themselves in deep philosophical debates about the best numbers to track. There is often more than one way to calculate a given Customer Success metric; Gaming.

Customer Success 94

Customer Success Metrics Software Review Customer Lifetime Value 94

Baremetrics

APRIL 13, 2021

Value metrics influence how much you charge customers for your SaaS product or subscription service. These metrics determine whether users consider your product or service a good value for the money. When you track these metrics, you can increase or decrease your prices (or pricing tiers) based on customers' perceived value.

Metrics 98

Metrics SaaS Subscription Payment Features 98

Subscription Flow

DECEMBER 1, 2023

Gross profit margins, customer acquisition expenses, manufacturing costs, and revenue growth are examples of metrics that may be used in a traditional business model that involves a one-time sale or a perpetual license. The following are the key metrics for subscription business that you need to be on the lookout for in 2023-24: 1.

Subscription 59

Subscription Payment Features Metrics Business 59

Chart Mogul

MARCH 31, 2022

The best way to keep track of your growth is to monitor your SaaS metrics. Why Metrics Matter? The best way to keep track of your growth is to monitor your SaaS metrics. Why Metrics Matter? Metrics tell a story of how your business is performing. Here are the key SaaS metrics you need to monitor.

Metrics 52

Metrics Scale Startup SaaS 52

Baremetrics

DECEMBER 12, 2021

AARRR, often called the pirate metrics framework (as in “arr, matey”), helps Shopify Partners perfect their funnel by providing actionable metrics for each stage of the sales and marketing strategy. Revenue What questions do the AARRR metrics answer? Use Baremetrics to calculate your AARRR metrics. Referral 5.

Metrics 98

Metrics Acquisition Customer Lifetime Value Retention 98

OPEXEngine

AUGUST 31, 2021

Metrics for software-as-a-service (SaaS) companies can be more informative, and therefore more actionable, if they’re viewed in relationship to one another rather than in isolation, Christoph Janz, managing partner of Point Nine Capital, says. More important is the interplay between them. But he does suggest a reasonable benchmark of 4x.

Metrics 52

Metrics SaaS Acquisition Business Model 52

ChurnZero

JULY 8, 2022

Cut to 2022, and the idea that a SaaS company could secure venture funding without investors digging deep into retention metrics seems comical, if not reckless. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business. Customer success owns a large portion of that metric.

Technical Review 98

Technical Review Software Review Retention Metrics 98

Baremetrics

MAY 26, 2021

With Baremetrics, you’ll have everything you need to track, measure, and optimize your SaaS financial metrics. All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. This brings us to our next challenge of SaaS financial metrics. Try Baremetrics free.

Metrics 59

Metrics Customer Lifetime Value SaaS Forecasting 59

ChurnZero

MARCH 18, 2022

With so many SaaS metrics floating around, and even more opinions on when and how to use them, it can be hard to know if you’re measuring what really matters. Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e.,

Customer Success 98

Customer Success Metrics SaaS Banking 98

SaaStr

DECEMBER 3, 2021

. #9 SaaStr 150: Why New Qualified Leads Divided By Win Rate Is The Metric in SaaS, Why It Is Harder To Go Enterprise Down Than SMB Up & How To Create Engines of Growth Within Your Organization with Paul Albright, Former CRO @ Marketo. #8 1 SaaStr 221: HBS Sr. . #3 1 SaaStr 221: HBS Sr.

Scale 201

Scale Sales Hiring SMB Benchmarks 201

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. Metrics that can affect SaaS business valuation include Monthly /Annual Recurring Revenue, Customer Acquisition Cost , Customer Lifetime Value , Net Revenue Retention, Total Addressable Market, and YoY Growth Rate. To calculate the metric, add all 4 of them.

SaaS 92

SaaS Customer Lifetime Value Acquisition Metrics 92

CustomerSuccessBox

JULY 14, 2021

There are several key metrics using which you can calculate your adoption rate. This metric helps understand customer adoption by determining the time a customer spends using your product. This metric is similar to the product access model, but feature usage is more about determining actionable next steps.

Customer Lifetime Value 52

Customer Lifetime Value Payment Features Payment Solutions SaaS Payments 52