"SaaS Metrics 2.0 - A Guide to Measuring and Improving what Matters, by David Skok"

🔦 I want to recommend on the article, "SaaS Metrics 2.0 - A Guide to Measuring and Improving what Matters, by David Skok", the article reviews the KPI's and business points regarding SaaS companies.

Unlike in traditional business, the revenue for the service comes over an extended period (the customer lifetime). If the customer is happy, he will stick around for a long time, but if he is not, he will churn quickly, and the business will lose all its investment in acquiring this customer.

If you want to increase your revenue growth you have to increase your marketing activity (new team hired, new campaigns etc.) facing significant losses in the early years.

📢 So....in short, what is so special about SaaS Business?

◽️ Special KPI's that are unique for that specific industry (CAC, LTV, ARR, Churn, etc.).

◽️ Exponential Growth of customers/revenues, financed by "deep pocket" Investments.

Tip: The article, points on two KPI's used to indicate whether your SaaS business is viable:

LTV > x3 CAC

Months to recover CAC < 12 months

Enjoy your reading......