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The critical metrics for each stage of your SaaS business

How healthy is your SaaS business?

We’re bombarded with KPIs and an endless series of metrics to tell us how we’re doing.

But instead of using data to measure our progress, it’s much more likely that we get lost and start focusing on metrics that are easy to track but don’t mean anything.

For a SaaS business, there are a few core metrics that need your undivided attention. And the priority of these metrics shift as you grow. If you’ve only had paying customers for 2 months, it doesn’t make much sense to track lifetime value. But later on, lifetime value is essential.

In this post, I’m going to break down the essential metrics for each stage of a SaaS business.

What this framework will give you:

  • By focusing on a few key metrics, you’ll also be focusing on the core problems you need to solve to get your business to the next level.

  • Data doesn’t do you any good unless you act on it. Each of these metrics clearly tells you how you’re doing. Right away, you’ll know where you need to spend your time.

  • Each stage has two metrics that balance each other. This keeps you from over-optimizing one metric and unintentionally harming the long-term health of your business.

Let’s jump in.

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