As you may recall, one of the first steps to follow when applying the canada phone number library methodology was to define your SMART objectives (Specific, Measurable, Appropriate, Relevant and Time-bound). Now, through the KPIs ( Key Performance Indicators ), it is time to check whether those objectives are being met.
There are hundreds of KPIs to measure our actions, but each company must apply those that best fit its characteristics, its goals and its business model. In this post we are going to focus on the 5 essential KPIs for SaaS companies .
Monthly Recurring Revenue :
This is the cumulative revenue generated by the company's customers on a monthly basis, that is, the money that the company expects to receive each month from its customers . This is a very important metric for SaaS companies, since subscription payments are usually paid monthly and it is essential to know how much money will be available each month. To calculate it, the number of paying customers is multiplied by the monthly revenue generated by each user.
Cost per acquisition :
It is the amount of money invested in acquiring a client , so it is directly related to the return on investment (ROI). It is calculated by dividing the total costs incurred by the total number of clients acquired with that investment and is expressed as a percentage. Logically, if the company is investing more money in acquiring clients than they generate, something is wrong.
Average Revenue Per Customer :
This is the average revenue per user that the company obtains in a given period of time. If we want to do the monthly calculation, we will divide the recurring monthly revenue by the total number of users. A good way to increase this ratio is through upselling and crossselling , that is, by offering related products to our clients.
