Growth metrics optimisation: Use AI to Improve and Augment SaaS Metrics.

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Welcome to the 58th edition of The Growth Elements Newsletter. Every Monday, I write an essay on growth metrics & experiments and business case studies.

Today’s piece is for 5,100+ founders, operators, and leaders from businesses such as Shopify, Google, Sage, Hubspot, Zoho, RateGain, Zaggle, Servcorp, Apollo and more.

Happy Monday!

Growth metrics, if mapped with AI, can help optimise and augment where needed.

Here are some ways AI can uplift the traditional SaaS growth metrics.

[1] CAC

Predictive analytics can identify the most cost-effective channels and customer segments, reducing CAC.

[2] LTV

ML models can more accurately predict LTV by analyzing historical data and customer behaviour. They can also identify high-LTV customers early and suggest personalized retention strategies.

[3] Churn Rate

AI can predict which customers will likely churn based on their usage patterns and engagement.

[4] MRR

AI can forecast future MRR by analyzing trends and customer data. It can also optimize pricing strategies and identify upsell opportunities to increase MRR.

[5] NPS

Sentiment analysis on customer feedback can provide deeper insights into the factors driving NPS scores.

[6] Retention Rate

Predictive models can identify at-risk users and suggest retention strategies.

[7] Conversion Rate

AI can optimize conversion funnels by A/B testing different variations and using predictive analytics to identify the highest-converting pathways.

[8] Virality Coefficient

AI can analyze social networks and user behaviour to identify key influencers and optimize viral loops.

[9] DAU and MAU

AI can provide real-time insights into user engagement and identify patterns that drive higher DAU and MAU.

[10] ARPU

AI can identify opportunities for cross-selling and upselling based on user behaviour and preferences. Dynamic pricing can also optimize revenue per user.

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► AI can boost traditional growth metrics by providing deeper insights, more accurate predictions, and personalized strategies to drive growth.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria