Tracking the right metrics is essential for the success of a SaaS business. Key metrics include:
1. Monthly Recurring Revenue (MRR): Indicates the predictable revenue generated each month. 2. Customer Acquisition Cost (CAC): Measures the cost to acquire a new customer, helping to assess the efficiency of marketing efforts. 3. Lifetime Value (LTV): Estimates the total revenue a customer will generate over their lifetime, crucial for understanding long-term profitability. 4. Churn Rate: Monitors the rate at which customers cancel their subscriptions, impacting overall revenue growth. 5. Net Promoter Score (NPS): Gauges customer satisfaction and loyalty, providing insights into potential areas of improvement.