SaaS Vanity Metrics

http://gigaom.com/2014/02/08/say-no-to-saas-vanity-metrics/

by ashrust • 12 years ago

61 6 12 years ago

danielsju6• 12 years ago

Out of curiosity, I see a lot of "negative" articles here. What you shouldn't be doing for metrics, how you suck because you don't collect metrics, etc. but I've seen very few great articles on constructive metrics and how best to collect them.

I'm sure this is something we all struggle with and, having done a couple startups, I feel like I have a pretty good idea what my investors and fellow stakeholders expect to see. Does anyone have any great articles bookmarked on what metrics SaaS startups should be collecting, formulas, etc.?

ashrust2• 12 years ago

I often feel the same way. I did suggest 3 'better' metrics in the article. The problem is we're brought up on generalized metrics and when in reality we need most likely need to create our own to really understand how our business is working, imo. Although the created metrics can/should be derivatives of the most often used metrics.

pmjoyce• 12 years ago

I consider David Skok's article on SaaS metrics[1] to be the best articulated and actionable source on this topic. It contains definitions of metrics, why they're important and even an Excel template that I've adapted to run my own SaaS business on. His article on the impact of churn on SaaS businesses[2] is also a must read even if you think you have a handle on it.

Another great source is Christoph Janz's blog, in particular his KPI dashboard for early-stage SaaS startups[3].

[1] http://www.forentrepreneurs.com/saas-metrics-2/

[2] http://www.forentrepreneurs.com/why-churn-is-critical-in-saa...

[3] http://christophjanz.blogspot.co.uk/2013/04/a-kpi-dashboard-...

gk1• 12 years ago

I help start-ups configure their web analytics (need help? See profile for contact info), and may write-up some tips in the near future... In addition to the two examples you mentioned, what other questions or topics would you like answered?

nickpresta• 12 years ago

A question regarding the HEU and MAUs -- how do you know when to balance reducing churn of those MAUs (getting them to come back after 72 hours) and focusing on the HEU?

ashrust2• 12 years ago

We've found that people who come back after 3 days, are very likely to be there in 30 days, assuming the product solves their problem. In general, we treat them as steps in the funnel - complete signup to become MAU, come back in 3 days to be HEU. We look at where in the funnel we're currently failing and spend time on that piece.

SaaS Vanity Metrics

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