Top 5 Metrics SaaS Marketers Care About The Most.
SaaS marketers need to keep a close eye on several key performance indicators (KPIs) to make their business boom.
The most important KPIs vary depending on the company and its growth stage, but some are universally important. Below are five of the most critical metrics that SaaS marketers should track.
1. Monthly active users (MAUs)
MAUs are a critical metric for all SaaS businesses.
They indicate how many people are using your product each month. But, of course, as your business grows, you’ll want to continue increasing your MAU count.
You can do this by adding new features that appeal to more users or marketing your product to a larger audience.
2. Churn rate
The churn rate is the percentage of customers who stop using your product each month.
Keeping your churn rate as low as possible is essential since losing customers can be costly and difficult to win back.
You can do several things to reduce your churn rate, such as improving your product’s usability, offering customer support, and creating a strong brand identity.
3. Lifetime value (LTV)
LTV is the average amount of money a customer spends with your company throughout their lifetime. It’s essential to know your LTV to set realistic goals for increasing revenue and profits.
You can calculate LTV by multiplying the average customer lifetime by the average customer lifetime value.
4. Customer acquisition costs (CAC)
CAC is the amount of money you spend to acquire a new customer. Therefore, keeping your CAC as low as possible is important since acquiring new customers can be expensive.
There are several ways to reduce your CAC, such as targeting a specific audience, creating a solid marketing strategy, and offering free trials or discounts.
5. Revenue growth
Revenue growth is an essential metric for all businesses, but it’s critical for SaaS companies.
A high revenue growth rate indicates that your business is growing and healthy. You can boost your revenue growth by adding new features, expanding into new markets, and increasing your marketing efforts.
These are just a few of the most important KPIs for SaaS marketers. Tracking these metrics will help you gauge the health of your business and make sure you’re on track to achieve your goals.
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