Growth Metrics — SaaS glossary

Metrics that measure how fast your SaaS is growing and where to optimize.

Churn Rate

The percentage of customers or revenue you lose over a given period.

Activation Rate

The percentage of new signups who complete a key action that correlates with long-term retention.

MRR Growth Rate

The month-over-month percentage increase in your Monthly Recurring Revenue.

Conversion Rate

The percentage of visitors or users who complete a desired action, like signing up or upgrading.

Viral Coefficient (K-Factor)

A measure of how many new users each existing user generates through referrals and sharing.

Logo Churn

The percentage of customer accounts (logos) lost during a period, regardless of their revenue value.

SaaS Quick Ratio

A measure of growth efficiency comparing new + expansion MRR to lost MRR from churn and contraction.

Cohort Analysis

Grouping users by their signup date to track retention, revenue, and behavior patterns over time.

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