SaaS Metrics
The key performance indicators (KPIs) that subscription businesses track to measure health and growth.
What it means
SaaS metrics are the dashboard of your subscription business. The core metrics include MRR, ARR, churn rate, CAC, LTV, NRR, activation rate, and payback period. Together, they tell the complete story of acquisition efficiency, retention health, and revenue trajectory. Mastering these metrics is the difference between guessing and knowing where your business stands.
Why it matters
You can't improve what you don't measure. SaaS metrics give you early warning signals (rising churn), confidence indicators (improving NRR), and strategic direction (which channels have the lowest CAC).
What are the most important SaaS metrics?
MRR, ARR, churn rate, CAC, LTV, net revenue retention (NRR), and activation rate are considered the core SaaS metrics every founder should track.
How often should you track SaaS metrics?
Track MRR, churn, and activation weekly. Review CAC, LTV, and NRR monthly. Do deep-dive analyses quarterly.
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