The Top 5 SaaS Metrics

The Top 5 SaaS Metrics

Are you a SaaS entrepreneur?

If not, probably best to skip this blog…

… but don’t worry, next week I’m going to share a killer strategy on how ANY business owner can grow their company by “drafting” on other people’s hard work.

Simple strategy, but powerful results.

However, if you ARE a SaaS entrepreneur, then let’s talk numbers.

Every day I get someone asking:

“What are the key metrics I should be monitoring in my startup?”

Even though it’s a loaded question, when it really comes down to it…

… there’s really only 5.

I call them the 5 C’s of SaaS metrics.

One of the most critical ones you should be tracking is CMRR (Committed Monthly Recurring Revenue)

Hint: Many founders forget to take out a few items that don’t count, and in turn artificially inflate their numbers.

Which leads to bad data, informing WORSE (and potentially crippling) decisions.

Not good.

Knowing the 5 C’s to track is half the battle.

Knowing HOW to track them is what gives you game-changing performance, quarter after quarter.

That’s what I go over in this week’s video.

One of the most challenging aspects of discussing metrics is ensuring that everyone is measuring them in the same way.

For example, when I was meeting with VC’s raising money for my startup Flowtown, we encountered several investors that calculated Churn or Customer Lifetime Value differently.

As a founder, that lack of standardization can get confusing (and costly)…

… that’s why I love what Andreesen Horowitz has done in 16 Startup Metrics.

They’ve documented exactly how to define ALL major metrics, and how founders need to present them.

But here’s a question for you.

What’s your favourite metric?

Leave a comment with your answer.

For my buddy Nathan – one of his favourites is Expansion Revenue… it’s a great one. What’s yours?

“What gets measured gets managed.” Peter Drucker (click to tweet)

Look at these numbers daily.

Use them to guide your product roadmap.

That’s what makes a great founder.

Discipline.

Keep up the good fight!

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