Introduction Businesses, whether small or big, choose SaaS over traditional software delivery methods mainly because of low initial costs and the flexibility SaaS model offers. Aside from these, more and more businesses in different parts of the world are investing in SaaS models because these offer scalability, integration, and usability. These features … Read more
Introduction Many users find SaaS terminology confusing at first, especially people new to cloud technologies. Understanding SaaS terminology is essential in building a solid SaaS strategy or buying SaaS services. Below we outline all of the important terminologies and acronyms related to SaaS and provide a brief overview of each. Some of … Read more
You can find countless blog posts and lists out there saying what metrics a subscription business should measure. There are tons of nice-to-have metrics, but I’d like to show you 5 metrics that are really indispensable for a SaaS or any kind of subscription business. It’s important to notice that this lists represents my personal point … Read more
For a salesman, the most important metric they keep track of is how much business have they closed per month, quarter, year. This helps set up payout, promotion, and advancement. But how do you get there? What’s important to keep track of that keeps a salesman headed in the right direction and … Read more
Churn Churn is the enemy of any subscription company. In a general definition, churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period. In order for a company to expand its clients base, its growth rate (number of new … Read more
Customer Lifetime Value LTV What is it? How to calculate it? What is LTV? Customer Lifetime Value, usually referred as LTV (sometimes as CLTV or CLV) measures the profit your business makes from any given customer. The purpose of the customer lifetime value metric is to assess the financial value of each … Read more
Average Revenue Per Account ARPA What is it? How to calculate it? What is ARPA? Average Revenue per Account (sometimes known as Average Revenue per User or per Unit), usually abbreviated to ARPA, is a measure of the revenue generated per account, typically per year or month. You could also say that … Read more
Monthly Recurring Revenue MRR What is it? How to calculate it? What is MRR? Monthly Recurring Revenue, almost always referred as MRR, is probably the most important metric at all of any subscription business. It’s what makes this business model so great. Once you acquire a new customer you got an recurring … Read more
Customer Acquisition Cost CAC What is it? How to calculate it? It’ll be tough for any business to succeed if it doesn’t have any customers. Customers play one of the most important roles in the business as they often function as brand ambassadors and keep the business running. In fact, customers are … Read more
Months to Recover CAC What is it? How to calculate it? Months to Recover CAC Months to recover CAC is a measure of time that demonstrates how long do you take to recover the amount of money invested on customer acquisitions (CAC). It tells your break even on a specific customer, group … Read more
