The SaaS metrics your company needs to effectively operate and grow from proven SaaS executives and those who invest in them.
Over 50 top metrics with examples, descriptions, and equations
Sourced from professionals using these metrics everyday
Testimonials from top SaaS Executives and Venture Capitalists
Growth Metrics, Retention Metrics, and Efficiency Metrics
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"Metrics allow you to have a heartbeat in your organization. Our advice to any SaaS founder or startup is to have a baseline on your key metrics. Keep it simple and choose 3-5 that make the most sense, then measure these consistently every week, every month to ensure they are moving in the right direction. And the key to obsessing about a key metric is making it a core company goal, sharing it with everyone, and having a single owner."
"As a customer success team, we are focused every day on ensuring that our customers are seeing a healthy ROI from our product. We spend countless hours building out tooling and processes to meet the needs of our customers in a timely manner. And, the decision by a customer to renew is the final say as to whether or not you’ve been successful in these efforts. Gross Retention is the metric that reflects how successful we’ve been in driving renewals. But, it is also a critical proxy for the value that you’re driving across your entire customer base."
"Pipeline coverage, as well as a number of opportunities created within our ICP, is something we track very closely. One of the great things about PLG is that it democratizes the ability for people to get their hands on your product. But it also creates a lot of distractions. So we break out most of our metrics, including pipeline generation, across ICP and non-ICP to give us a better sense for the overall health of the pipeline."
"The best SaaS businesses focus their attention on specific engagement metrics, so they can measure relevant user behavior, which in turn allows them to create a huge number of loyal customers. This leads to getting more business growth."
"Gross margin is a critical metric for SaaS startups to measure and improve. Low margins aren’t healthy or sustainable for most SaaS companies, and gross margin is one of the first metrics VCs and other investors often look at when evaluating a SaaS company."
"My favorite metric is ’Net Dollar Retention’ (NDR). It is a profound metric in helping understand not only customer delight but also long-term enterprise value. The best SaaS companies in the world have the highest NDRs as well. This metric should be owned by the CEO and managed by the heads of customer success and sales."