5 Metrics That Every Subscription Business Should Measure

mrr growth

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

The Right SaaS Metrics for Each Stage of Your Company

The Right SaaS Metrics for Each Stage of Your Company

You probably know tons of different SaaS and subscription metrics, and you probably heard you should be measuring a few of them no matter what. Actually even we have told you that on the “5 metrics that every subscription business should be measuring” article. Guess what? That isn’t necessarily true. Don’t get … Read more

Effective Tactics to Reduce SaaS Churn

Effective tactics to reduce SaaS churn

If you’re just getting started to acquire your very first customers, churn may not be a big deal, but as soon as you get over a hundred customers to churn becomes crucial. And by crucial, I mean it can be the difference between the success and failure of your business. A high churn … Read more

Bookings vs Revenues vs Billings

Bookings vs Revenues vs Billings

Terms like revenue, billing, collections, bookings are often used interchangeably and although interrelated, they mean different things in the world of SaaS. Booking, revenues and billings are among the three most commonly used metrics that’s why we have dedicated a separate post for these three. For the sake of explaining, let’s consider … Read more

EBITDA vs Gross Margin vs Net Profit

EBITDA vs Gross Margin vs Net Profit

We recently discussed how revenue should be recognized in a SaaS company, comparing it to bookings and billings, and it’s pretty straight forward. Profit is harder to define. There are multiple ways to keep track of it, with metrics such as Operating Income, Net Income, Free Cash Flow, Cash Flow or something … Read more

ARR vs ACV vs TCV

ARR vs ACV vs TCV

What comes to your mind when you read the letters ARR? Well, if you’re in the financial market you may refer to the NYSE:ARR stock, if you’re a tech guy you may think of Application Request Routing; but for us SaaS professionals, ARR means two things only: Annual Run Rate and Annual Recurring … Read more

What Is Customer Engagement Score and How to Calculate It

What is Customer Engagement Score and How to Calculate It

At its core, customer engagement score is a single metric that is used to measure how engaged your customers are. The metric is represented by a number based on customer activity and usage of your product or service — the higher the number the happier and more engaged the customer. Together with customer … Read more

Why You Should Offer Yearly Billing to Your SaaS Customers

Why You Should Offer Yearly Billing to Your SaaS Customers

Yearly billing can make all the difference in the world for the health of your SaaS business, and I’m going to show you why. The way a company decides to bill its customers will directly impact revenue streams needed to maintain cash flow and business operations. If you’re building a SaaS company looking … Read more