IDG Contributor Network: 3 Leading Indicator Software-as-a-Service Metrics to Understand Where Your Business Is Heading

IDG Contributor Network: 3 Leading Indicator Software-as-a-Service Metrics to Understand Where Your Business Is Heading

We all know the flagship metrics by which Software-as-a-Service businesses are gauged — Customer Acquisition Cost, Customer Lifetime Value, churn and the like. Understanding these metrics is key to measuring the health and value of a Software-as-a-Service (SaaS) business, and if you’re the operator of a SaaS company, you should have a deep understanding of what each of these metrics means, how to measure them for your business and whether your metrics are healthy or indicate potential issues.

Every company is different, but a combination of common knowledge and some business-specific reasoning should give you a sense of whether your SaaS metrics jive with where you want your business to head.

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