From our experience of having developed numerous Saas Application Development Solutions for clients from varied industry backgrounds, we strongly believe that there are four key business metrics that every business inclined towards SaaS applications must pay heed to.

  • Customer Churn: Retaining existing customers is as important as acquiring new customers. Since most of the SaaS businesses are based on an annual subscription model, it becomes essential to get the existing customer to continue your services. The success of the marketing strategies lies in achieving a near 0% churn rate and that’s a great challenge!
  • Revenue Churn: This is also a prominent subscription metrics similar to the customer churn metric. The metrics help gauge the revenue lost due to a number of reasons like cancellations, downgrades, competitive losses, and so on.
  • Customer Lifetime Value (CLV): It is the metric that throws light on how valuable a customer is to you with an unlimited time span as against a just one-time subscription. It helps to gain an understanding of reasonable cost per new acquisition.
  • Cost of Customer Acquisition (CAC): It represents the cost incurred to acquire new users and how much business they drive to the business. The metric when combined with CLV, assists businesses to check the viability of the business model.