3. Relevant Metrics
Acquisition:
1. CAC (Customer acquisition cost) by channel : This metric highlights that how marketing activities over different
channels are affecting CAC over a period of time & help in deciding further actions to reduce the same
2. Website sessions v/s Goal: This gives a good indication of how website is performing in terms of attracting enough
people to your site.
3. Lead rate %: This metrics measures the percentage of visitors who submit their phone no./e-mail id for further
assistance to use the service assistance & provide clear picture how many visitors are genuinely interested in the
service
Activation:
1. Sign ups(free trials) per month: This metric highlight how acquisition efforts are performing in a given time period.
By comparing customer acquisition rates you can tell if your business is acquiring more users now versus another
historical time period
2. Sign up conversion rate: This metric provides the percentage of users who convert to paying customers per month
4. Relevant Metrics
Retention:
1.Retention Rate(2 weeks after signing up): This metrics will measure the no. of users retained after using the service
after 2 weeks of signing up
2. Churn rate: Customer churn rate refers to the rate at which customers stop doing business with the company. This
can be calculated over a period of time depending on the average rate of engagement(monthly/yearly..)
3. Customer lifetime Value(CLV):This metric tells how much revenue a customer will bring during their time as a
paying customer. This metric is helpful to SaaS PMs when deciding how much to spend on obtaining new customers,
how much to spend to keep existing customers or where to allocate resources
Revenue:
1. Monthly revenue: This metric gives the measure of revenue earned per month and allows to compare the
company’s performance month over month
2. Average revenue per account(ARPA):ARPA stands for Average Revenue Per Account, and is used to measure how
much revenue is contributed by an “average” account or customer, per month. Changes to ARPA can be helpful for
tracking growth and revenue generation on a per unit basis.
5. Relevant Metrics
Referral:
Net Promoter Score: This metric is a quantitative measure of each customer's general satisfaction and loyalty to your
brand.
Once you've calculated the overall Net Promoter Score, the data will ultimately tell you if your customers are content
and willing to refer your products or services to others
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