What are the most important metrics for SaaS?

Expensive SaaStr: What Are the Most Essential SaaS Metrics within the Early Days?

Within the early days, there are in all probability solely 5 metrics that actually matter:

1. ARR
2. ARR Development Price
3. Burn Price
4. True Buyer Happiness. In all probability, measured as NPS (extra right here: I Was Wrong. NPS is A Great Core Metric. | SaaStr)
5. And upon getting not less than slightly income ($1m-$2m ARR or so), internet income retention / churn.

(NRR and churn aren’t essentially statistical important earlier than 12 months 2-3 and earlier than $1m-$2m in ARR).

All the remaining, possibly don’t obsess an excessive amount of till you’re larger:

• Your CAC and CLTV?  Measure for positive, however what actually issues within the early days is retaining the burn price down.  That summarizes loads of CAC and CLTV within the early days.
• Your Burn Mutliple?  Essential if in case you have loads of enterprise capital, however once more, not a lot if in case you have a modest quantity of funding.  What issues extra is simply your absolute burn price (and Zero Money Date).  That your burn is modest. Extra here.
• Churn is vital, however within the early days, simply drive it down.  You might be nonetheless studying.

What issues within the early days is:

• Do you will have product-market match? So you’ll be able to develop quick sufficient …
• And do your clients love you (so they may beget you extra clients)?
• And can you run out of cash earlier than you hit escape velocity?

The remainder issues, however could be a distraction.  Don’t get misplaced in secondary metrics and miss the larger early-stage objectives.