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5 ‘actionable’ metrics to track in a MIS of a SaaS business!

If you are a early stage SaaS company, below are 5 key buckets of metrics that you can track and report to your stakeholders.

Metric Category What to track (MoM) Why to track
Conversion Funnel

 

No. of visitors, signups / free trials, purchases, source of visitors (paid, organic, other channels etc.) to keep a tap on visitors to paid customers conversion ratio, learn about effectiveness of marketing, website and product demos, unlock bottlenecks in conversions, benchmark conversion % with industry standards

 

Customer volume data

 

Total Customers, new customers, lost customers, upgrades / downgrades.

(track by customer plans and customer segments)

 

To look beyond just revenue data and understand customer acquisition pattern, allow you to go deeper on which customers you are losing and why, understand underlying factors of revenues growth or otherwise, perform cohort analysis

 

MRR (ARR) and Churn

 

Total MRR, new MRR, MRR Churn.

(track by customer plans and customer segments)

 

Understand revenue growth patterns and drivers by plans offered, assess churn impact on revenues, benchmark churn % with industry standards
CAC

 

COGS, sales and marketing spending.

(track by customer plans and customer segments)

 

assess your ability to make profits in long term (LTV: CAC ratio), evaluate each channel’s ROI, evaluate months it will take to recover CAC

 

Cash

 

cash in, cash out, cash at beginning, cash at end evaluate cash runway in terms of months for the company, evaluate fund raising plans, required cost controlling measures, evaluate anomalies

 

* Month over Month (MoM) tracking, Monthly Recurring Revenues (MRR), Annual Recurring Revenues (ARR), Customer Acquisition Cost (CAC), Long Term Value (LTV), Cost of Goods Sold (COGS), Monthly Information System (MIS).

Source: Internal research and feedback from experts, Christoph Janz, The Lean Startup (Eric Ries).

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