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Best KPI for every SaaS Business

For almost every type of business and company, the SaaS KPI dashboard plays an important role. In a company for sales, marketing, customers’ success, or anything else, you need to keep track of data, to fulfill this purpose Best KPI for your SaaS business.

These all actions are performed by using KPI SaaS products and utilize its usage metrics. It is a crucial decision for companies that KPI should use to track because many options are available. Each SaaS KPI application performance depends upon its metrics, so you need to choose wisely.

Top 5 KPI for every SaaS business

In this topic, we will describe the top 5 KPI for your business, so that every business owner or team should be able to analyze or monitor their business performance better.

Churn Rate

Every business or industry must get new customers with existing customers. If you are not able to stick with your customers, then it would become a loss for you. In that case, the solution is very simple, and that is Churn rate, to generate revenue growth and to maintain your existing customer in an effective manner and for generating new customers.

Monthly Recurring Revenue (MRR)

You can take many advantages by using Monthly Recurring Revenue (MRR). If your business or company is Subscription-based, then MRR helps you focus on the present and keep tracking how business is growing. By using MRR, any company can easily track over long term contract booked sales, and instead of tracking the short ones.

Revenue Churn Rate

Tracking a Revenue churn rate is more important than the customer’s churn rate. The Revenue churn rate KPI helps you to measure the loss of revenue. So, by using this KPI, you can easily evaluate the customer’s impact over the others. If you compare the monthly revenue churn rate with the customer churn rate, then it might be possible that you will get a different result and would be able to generate more revenue than others.

Annual Recurring Revenue

This KPI is an extended version of KPI monthly recurring revenue. You can easily generate the annual recurring revenue by multiplying the monthly recurring revenue to 12. Few companies calculate the ARR manually, while the others use a system like plecto, to estimate the Annual Recurring revenue SaaS metrics in real-time.

Lead Velocity Rate

Every SaaS business or company needs to loom for future possibilities of income. The Lead velocity rate helps you in quantifying the business growth in terms of qualified leads. In short, they will help you measure how many potential customers you should work to convert into actual customers. Many sales metrics are focusing on looking backward; at that point, LVR helps you to focus on looking forward.

Therefore, these are the few KPI’s that would be very helpful in your SaaS business growth. So if you are already familiar with old KPI’s, then the above described KPI are the few new stuff that will refresh your memory in terms of KPI’s. You need to just keep an eye on the above-described KPI’s, and you would be able to generate a smooth and transparent dashboard for your business.


Published by Payvoice

Payvoice makes it easy to create beautiful subscription portals from Stripe products and plans. Payvoice syncs with your Stripe products and plans and allows you to create beautiful subscription portals from any number of those plans. It will also enable your sales team to manage Stripe's subscription billing from outside Stripe.

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