Most Commonly Used Metrics by SaaS Companies

Totango-Metrics-Tracked-by-SaaS-Companies-Feb2016Source: Totango

    Note: A slight majority (56%) of SaaS professionals are satisfied with the state of their business metrics, per results from Totango’s 5th annual State of SaaS Metrics report. Currently the most commonly tracked customer acquisition metrics are website unique visitors (84%) and the number of new trial or free signups (66%). Churn (80%) is the most commonly tracked metric on existing customers, ahead of customer usage statistics (63%) and add-on/expansion sales (58%).

    However, the metrics that most respondents plan to add this year are customer retention cost (55%), customer health (46%) and customer lifetime value (45%).

    Separately, the study finds that only around one-third (32%) of respondents have churn rate of 5% or less, while roughly 1 in 5 (19%) experienced churn rates greater than 15%.

    The report indicates that companies are not focusing enough on boosting revenues from existing companies, with only 19% of companies getting more than 20% of their new revenue from upsells and add-on sales. Not too surprisingly, high-growth companies were found to be having more success in generating high upsell revenues (>40%) from existing customers than low-growth companies.

      Related: SaaS Companies’ New Business From Free Trials and Freemium

        About the Data: The results are based on a survey of more than 300 SaaS professionals, of whom 46% work as customer success/account managers. Some 56% of respondents come from companies with a customer success team size of more than 5 people and the vast majority (~80%) are from companies with at least $1 million in annual revenues.