SaaS businesses generate a lot of data. Using the data to inform decision making is crucial, while also ensuring that data is not misused. It is all too easy to focus on vanity metrics i.e. metrics that seem to be worth measuring but often only loosely correlate with success. In our experience most SaaS businesses fail to truly grasp the nuances of SaaS KPI’s.

Thankfully people like David Skok and Avanish Kaushik have done much to broaden our collective understanding of the power of data to transform businesses.

Read More

Key Recommendations

Why metrics are a startups best friend?

Entrepreneurship in Britain continues to remain very much in vogue, ably assisted by heavy backing from most quarters (not least...

All Articles

The ultimate SaaS metrics cheat sheet

Many people ask us for help understanding what all the SaaS metrics mean, why they’re useful and how they’re calculated. We thought we’d invest some time detailing the most important metrics for SaaS businesses into a two-page cheat sheet.

View article

The complete guide to UTM codes

“UTM” stands for “Urchin tracking module.” Urchin Software Corporation was acquired by Google in 2005, and their software laid the groundwork for what we now know as Google Analytics.

View article

The ultimate SaaS LTV cheat sheet

Customer Lifetime Value (LTV) for SaaS businesses is perhaps one of the most difficult metrics to calculate. Use our free cheat sheet to get to a reliable estimate, and get a better picture of the health of your business.

View article

New: 80+ SaaS companies reveal MRR and other SaaS metrics

At 19 I started a SaaS company in my dorm room and just sold it in February after my 25th birthday mainly due to luck and blind hard work. Over the companies life, we raised $2.5M in venture capital, drove $5M in sales (mainly by cold emailing potential partners), and grew our customer base to over 10,000 paying customers.

View article

The importance of payback period for SaaS startups

One of the most powerful levers for SaaS companies to master is payback period. Payback period is the number of months a company requires to payback its cost of customer acquisition. The median SaaS startup has a payback period of 15 months on a gross margin basis.

View article

The cohort analysis

A cohort study or panel study is a form of longitudinal study used in medicine, social science and ecology. It is one type of study design and should be compared with a cross-sectional study.

View article

A KPI dashboard for early-stage SaaS startups

Over the last few years I’ve helped quite a lot of SaaS startups to create or fine-tune their KPI dashboards. While every situation is a bit different there’s also a lot of overlap, which made me think that it would make sense to publish my template (not without polishing it a bit). I hope other SaaS startups will find it useful, and it will also make it easier for us to communicate what KPIs we’re looking for when we talk to SaaS entrepreneurs.

View article

AARRR: pirate metrics for SaaS

Entrepreneurs need to ask the right questions: how can I measure and optimize each step of my funnel to grow quickly and expand my customer base? One simple answer is: AARRR.

View article

Metrics spreadsheet for every SaaS company

Lately I’ve been talking to more entrepreneurs that have product/market fit and are working to find a repeatable customer acquisition process (see 5 Steps to Startup Success in 30 Words). Now, sales and marketing metrics become critical and it’s time to figure out what works.

View article

Have you read a SaaS post that should feature on our site? Submit it today.