Killer SaaS Metrics: The Impact of Churn, Customer Success and Instrumentation on SaaS Performance Presentation slides by Stanley Sarpong, Olju Man, and Atiq Khan from Punchlime Punchlime believes that one of the biggest reasons why startups fail is a lack of customers. Our innovative business model helps ensure the success of our portfolio companies and the ROI of our portfolio companies' investment partners by strengthening in-house capabilities. Punchlime's approach is to devote our top tier team, comprised of senior former Googlers, experienced entrepreneurs, business strategists and venture investors, to enable our portfolio companies to increase customer acquisition and retention and all that it entails, through helping them to hack into scalable growth. Visit our website: http://www.punchlime.com Like Punchlime on Facebook: https://www.facebook.com/punchlime Follow Punchlime on Twitter: http://www.twitter.com/punchlime Add Punchlime on Google+: https://www.google.com/+Punchlime Subscribe to our YouTube channel: http://www.youtube.com/user/punchlime1 About Stanley Sarpong: http://www.punchlime.com/team/stanley-sarpong About Olju Man: http://www.punchlime.com/team/olju-man About Atiq Khan: http://www.punchlime.com/team/atiq-khan

1. Killer SaaS Metrics.
The Impact of Churn, Customer Success and
Instrumentation on SaaS Performance
Stanley Sarpong, Olju Man & Atiq Khan.
@
Updated January 2014
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2. The Blind Men & Elephant.
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3. Saas Conversions.
Case Study
200,000 Visitors
10%
20,000 Free Trial Signups
2.5%
500 Free Trial Users
40%
1%
200 Converted to paid
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4. Key SaaS KPIs.
1. COCA
2. LTV
(Cost of Customer Acquisition)
(Life Time Value per Customer)
3. Churn
(Customers you lose per month/year)
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5. Why Churn is Your Killer Metric.
Potential impact of Churn on Revenue & Valuation
Success Metrics
Scenario 1
Scenario 2
Customers Acquired
1200
1200
Average Monthly
Revenue per customer
$700
$700
Customers Lost
180
90
Customer Churn
15%
7.5%
6.7
13.3
$5.6M
$11.2M
$28M
$56M
Average Lifetime in
Months per customer
Total Revenue
Valuation
(if 5x)
5 Years Example.
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6. T Ford.
The car without a dashboard
You can drive it, but you do not know how far you will get.
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7. Key Metrics per Evolution Stage.
1. Site Visitors
2. Trials
3. Stickiness
4. Signups
5. Recurring Revenue
6. COCA & LTV
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8. One Metric That Matters.
At each stage of the business evolution
1. Site Visitors
200K
Early Days
Visitors
Optimization Opportunity!
10%
20K
2. Trials
Signup
conversion
Signed Up
500
Trial started
3. Stickiness
0.25%
Visit to Trial Conversion
4. Paying
Clients
250
0.125%
Active Trials
Sticky Trial Users
200
Converted from Trial
5. Recurring
Revenue
Recurring Revenue from
previous month/year
Net New Recurring
Revenue per
month/year
6. COCA & LTV
Marketing & Sales
Expenses / Total new
clients
Average monthly/yearly
revenue per client *
Lifetime of Client
&
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9. Free Trial Anatomy.
Best in class metrics based on 80/20 rule
Early Days
10%
1. Active Trial Users
250
Optimization Opportunity!
Active Trial Users
Trial users most likely to buy.
20%
2. Casual Trial Users
500
250
Trial started
Active Trial Users
Nurture casual trial users to increase conversions.
70%
3. Accidental Signups
20K
500
Signed Up
Trial started
Likely to churn.
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10. Thank you.
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