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Top Metrics All Customer-Centric SaaS Companies Should Track

by Joe Peters
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saas companies

Repeat customers are the key to running a successful software-as-a-service business.

The more you impress your target audience, the more likely they are to continue using your service, make additional purchases, and refer new customers your way.

So, how do you know if your SaaS company is generating happy, loyal customers?

Revenue rates and customer feedback are a good start, but you need to dive a little deeper if you want to generate real results.

Knowing which customer-centric metrics to track will help you make better decisions on how to improve customer experience and increase loyalty in the long run.

Today, we’re going to look at just a handful of the critical metrics customer-centric SaaS companies should be considering today.

Churn Rate

Perhaps the most commonly mentioned customer service metric of all, churn rate calculates the number of people that abandon your company over a specific time.

“Churn” can be defined as any time a customer closes their account with your business, cancels their subscription, or just fails to renew.

Measuring customer churn will give you a good insight into whether your recent efforts to please your customers are working as well as you’d hoped or not.

For instance, if you implement a new live chat service to replace your call center and the churn rate starts to rise, you know you need to bring back your alternative contact options.

To calculate the churn rate, all you need to do is divide the number of customers you had at the beginning of your chosen time period by the number you have at the end.

Multiply the resulting number by 100 to get your percentage.

For instance: 100 (customers at the start of the month) / 50 (customers at the end of the month) = 2 x 100 = 200% churn rate.

If your churn rate is high, make sure you speak to your customers to find out why they decide to leave, this can give you the inspiration you need to make important changes to your strategy.

Net Promoter Score (NPS)

A Net Promoter Score (NPS) determines whether your existing customers would happily recommend your company to another possible client.

There are a lot of factors that can influence this score, including the personalized service a SaaS customer gets from their sales team, and how many benefits they see from your software.

To measure NPS, all you need to do is ask!

Start by conducting a survey to determine how likely, on a scale of 1 to 10, each customer would be to recommend a specific product or service.

If someone answers between 9 and 10, they’re seen as “positive promoters”. Ratings from 7 to 8 are “passives”, while people who rate 0-6 are “detractors”.

Finally, to get your final score, you take the percentage of promoters in your community and subtract the percentage of detractors.

A finished score often falls somewhere between -100 and 100.

If you have a poor Net Promoter Score, it’s time to look at your customer usage data in depth.

Find out what kind of problems your customers have most often with your service, and determine if they mention this problem when they leave your company.

Do you have any negative reviews highlighting issues that make your product or service less attractive to clients?

Fixing these will make people more likely to recommend you to their friends.

Customer Satisfaction Score

Otherwise known as “CSAT,” customer satisfaction score is a measurement of how happy a customer is with a particular brand’s service or products.

Companies can use CSAT to determine how positively someone feels about their brand.

Usually, it’s a good idea to measure CSAT at different times in the customer journey.

By measuring CSAT over the course of the customer experience, you can see whether happiness levels drop after an onboarding process, or an upgrade to a new service.

Like NPS, you should use a survey to measure CSAT scores.


This will allow you to collect quantitative and negative data.

For quantitative data (numbers), you can ask your customers to rate their satisfaction on a scale of 1 to 10.

Then, to get an overview of satisfaction, divide the number of positive scores (between 6 and 10) by the number of surveys you’re analyzing.

If your CSAT score is low, you can use the other information provided by customers on your survey to find out why.

Underneath each 1 to 10 scale, ask your customer to explain why they gave their score so you can attribute a lack of satisfaction to specific things.

Customer Lifetime Value

Though trends in customer data analysis have evolved over the years, customer lifetime analysis has always been an important metric.

This concept, known as CLV, is a metric that indicates the total revenue businesses can reasonably expect from specific clients.

This is a great metric to look at for SaaS companies, which tend to build relationships with repeat customers.

CLV takes the customer’s revenue value and multiplies it by the expected lifespan of that customer.

For instance, if your most valuable customers spend $100 per month, and they’re expected to stay with your business for at least two years, they’ll have a CLV of $2,400.

Checking the CLV of your customer from time to time allows you to see whether you’re gradually increasing the value of each client or not.

If your customers are beginning to spend less money with your SaaS company over time, this is a sign that they’re not happy with your product or service.

Customer Onboarding Metrics

Onboarding metrics are often overlooked by companies looking to improve their customer service strategy.

However, these are the metrics that dictate how committed your customers are to making the most of your service, and how well you’re helping them leverage your tools.

Customer onboarding metrics help you figure out whether you’re giving customers the guidance they need to use your service effectively.

For instance, you should look at customer progression rate to see whether it’s taking too much time for certain customers to move from one part of their journey to the next.


If your customers are struggling to move to the next stage in their onboarding journey, this could be a sign that you’re not providing enough guidance.

This means that they need some specialist assistance from a professional.

Dedicating more time to onboarding could reduce your chances of customer churn and improve lifetime value too.

Measure the Right Metrics

Metrics are a powerful tool in tracking the satisfaction of your customers and ensuring the success of your business.

Measuring the right metrics will help ensure that you’re taking the right steps to generate loyal clients long-term.

Make sure you don’t underestimate the power of these customer-focused metrics.

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