In conventional models, most of the time data, such as getting a customer or preventing a customer from leaving, was not that important. In SaaS products, it is vital as we need a customer to have a long life in our business to start making profits.
5 key SaaS metrics for business
Below we have listed the metrics that we consider most important to use bahrain phone number library your SaaS business . Throughout the life of your business, we consider it vitally important to manage as much data as possible, as it will help you have a reliable view of what is happening in your company, beyond the merely palpable day-to-day.
This data will help you optimize your business operations and show you improvements where you probably didn't think there were any. Each of the following important SaaS metrics will be targeted to a type of business and each of them will need to know if they are in the right time to do that SaaS metric.
Customer Acquisition Cost (CAC)
This data shows the investment we have made for each new customer we have acquired. This statistic must be linked to the average customer purchase, since the value alone will not give us any results.
That is, if the CAC is 15 euros and the customer spends 20 euros, perhaps we should optimize the CAC. But if our CAC is 10 times higher, i.e. 200 euros, but the average customer spend is 2,000 euros, we will already be having a great return on investment.
CAC = Total cost of campaigns/New customers gained
Within the costs, we must include advertising in traditional media, online, sales team costs, events, etc. We must not leave out any expense that was the marketing campaign itself.
Lifetime Value (LTV)
It is a relationship linked to the previous concept and could be defined as the net value of the income generated by a client during his/her lifetime.
