MRR. CAC. CLTV. There are a lot of acronyms and buzzwords about how to measure startup success these days, especially for SaaS companies. The reality is that there are many ways to track the health of your tech business, and there are various points of view on which indicators are the most meaningful and why.
We wrote a useful guide to break down the 8 best growth metrics SaaS startups should be tracking.
In The Best SaaS Startup Growth Metrics: 8 KPIs to Show Investors Your Startup is Primed for Success we explore the most common metrics used in the SaaS industry.
Using simple examples, you'll learn how to calculate each metric and why these key indicators are so important to investors.
Use this guide to:
Show investors your business has solid traction
Find out how to calculate key metrics
Demonstrate revenue potential
Measure product market fit
Understand how investors & lenders view each metric
Successful tech startups use these key SaaS metrics to guide their business decisions.
Levi Morehouse, CEO and Founder of Ceterus, says his company uses Monthly Recurring Revenue (MRR) as their main performance indicator. The focus on MRR allows the company to “develop valuable recurring solutions, sell these to the right prospects, and deliver value to customers.”
Morehouse attributes much of his company’s recent growth and success to prioritizing recurring opportunities over non-recurring opportunities, which means frequently rejecting profitable leads that would make them grow quickly in the short run but would not grow MRR.
This is just one example of how SaaS startups are using metrics to make smarter, data-based decisions.
Get the guide and get a deeper understanding of how to grow a sustainable SaaS business.