SaaS Businesses: What to Measure

Doing some research on core metrics for the SaaS business model – a lot of this I’m remembering from GetSat and Typepad. KISSMetrics comes through as usual with a top five:

  • MRR – monthly recurring revenue – you can’t count a year subscription all at one time – chop it into twelfths
  • Churn – percentage of customers who bail each month – KISSMetrics says if it is in the double-digits, drop everything and focus on product
  • Cost Per Acquisition – marketing cost divided by new users
  • APC – average revenue per customer – total revenue divided by number of customers
  • Lifetime Value – average subscription length times monthly average revenue per customer

Full post

This entry was posted in General and tagged , , , , on by .

About Andy Wibbels

Andy is an award-winning blogger and author of the book Blogwild! A Guide for Small Business Blogging. His work has been featured in The Wall Street Journal, USA Today, Entrepreneur, Wired, Business Week, Forbes, and other national and international media. He was worked at several San Francisco startups including Get Satisfaction, SAY Media, InMobi, Keas, and Mindjet. Currently, Andy is Director of Marketing at Lucidworks. Tw · Fb · G+ · Li

Leave a Reply

Your email address will not be published. Required fields are marked *