SaaS Metrics 2.0
Article

SaaS Metrics 2.0

A Guide to Measuring and Improving What Matters

David Skok
For Entrepreneurs, 2018
Read the article

Read or listen offline

Amazon Kindle
audio autogenerado
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
audio autogenerado

Editorial Rating

9

Qualities

  • Analytical
  • Applicable
  • Concrete Examples

Recommendation

Software as a service (SaaS) executives face a different set of challenges than their counterparts at more traditional enterprises and need a different set of metrics. To help subscription businesses evaluate viability, make stop-or-go decisions, and grow faster and bigger, venture capital investor and serial entrepreneur David Skok, writing on his blog forEntrepreneurs, offers a comprehensive article describing the critical metrics for subscription businesses and ways to improve them. Although long and at times complicated, Skok’s discussion ranks as a must-read for SaaS executives and investors.

Summary

Software as a service (SaaS) enterprises – and other subscription businesses –differ from traditional businesses in that their revenue depends primarily on customer longevity. SaaS executives should focus on customer retention above all else – because their profits, growth and overall success depend on it. The critical metrics for SaaS businesses reflect customer lifetime value (LTV), typical cost to acquire a customer (CAC), churn – the percentage of customers that leave each month or year – and monthly or annual recurring revenues (MRR or ARR).

About the Author

Venture capital investor and serial entrepreneur David Skok writes at his blog, forEntrepreneurs.

Comment on this summary or Comenzar discusión