SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters
“If you cannot measure it, you cannot improve it” – Lord Kelvin This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite of an older post. For this version, I have co-opted two real experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of Strategy, HubSpot), to add expertise, color and commentary from the viewpoint of a public and private SaaS company. My sincere thanks to both of them for their time and input. SaaS/subscription businesses are more complex than traditional businesses. The goal of the article is to help you answer the following questions: Is my business financially viable? (Note: although I focus on SaaS specifically, the article is applicable to any subscription business.) What’s so different about SaaS? Acquiring the customerKeeping the customer (to maximize the lifetime value). The SaaS P&L / Cash Flow Trough Ron Gill, NetSuite: Why is growth important?
Related: Financial Planning for Saas
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