Product Metrics to Measure the SaaS Success

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Welcome to the 73rd edition of The Growth Elements Newsletter. Every Monday and sometimes on Thursday, I write an essay on growth metrics & experiments and business case studies.

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Product leadership is critical for SaaS success, and so are the Product metrics. Here are the metrics for measuring Product Success.

[1] 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐒𝐚𝐭𝐢𝐬𝐟𝐚𝐜𝐭𝐢𝐨𝐧

• Net Promoter Score: Businesses with NPS of 50+ grow 2x faster than competitors.

• Surveys: Regular customer satisfaction surveys help prevent churn and understand user sentiment.

[2] 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 𝐔𝐬𝐚𝐠𝐞

• DAU/MAU: Products with a DAU/MAU ratio of 20% or more typically see higher user retention.

• Time Spent in App: More time spent reflects deeper user engagement and can help identify key product features.

[3] 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐌𝐞𝐭𝐫𝐢𝐜𝐬

• ARPU: A healthy ARPU in SaaS ranges between $50 and $100/month, depending on the market segment.

• LTV Growth: 10% increase in LTV can drive up profitability by 50%.

• Example: Two extremely critical product feature releases at Salesflow expanded LTV growth.

[4] 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐡𝐚𝐫𝐞

• Gaining even 5-10% market share can provide a solid competitive advantage.

• Businesses leading the market tend to set industry trends and see sustainable revenue growth.

𝐅𝐢𝐧𝐚𝐥 𝐖𝐨𝐫𝐝𝐬

Tracking metrics like NPS, DAU/MAU, and ARPU provides valuable insights for improving engagement and profitability.

SaaS businesses can differentiate, retain customers, and drive growth by optimising these metrics.

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