Ebook Best Practices SaaS Customer Success SaaS Metrics

The Metrics-Driven SaaS Business | Ebook

metrics-driven saas business
Written by Joel York

The SaaS community has gained a solid understanding of SaaS financial metrics, as well as many of the operational principles required to achieve them. However, there has always been an obvious gap between what happens on the top line and what happens on the ground. This is about to change! The SaaS industry is maturing beyond simple, historical SaaS financial measures toward sophisticated operational measures in the form of new SaaS customer success metrics and predictive analytics. We are witnessing the emergence of The Metrics-driven SaaS Business.

saas customer success metrics ebook

This new Ebook is a compilation of recent posts inspired by my ongoing collaboration with Bluenose Analytics that explores the new Metrics-driven SaaS Business and its foundation of emerging best practices in customer success metrics.

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  • Rob NPS stands for Net Promoter Score. This is an evaluation method that rates how likely a customer is to tell someone else about your product. The range is from 1-10. 9 & 10 being your company’s evangelists. 7 & 8 are considered positively neutral. The like your product but aren’t compelled to share it with anyone. 0-6 are your company detractors.

    The goal is to engage 0-6 and find out what the problem is or how to help, move 7 & 8s up to evangalists status(9&10) and reward your 9s & 10s.

    NPS gives you a general sense of customer success and helps move you to action. The problem with NPS is that all companies have resource constraints. Using Customer Lifetime Value(CLV) is a much better indicator of who should be targeting and how. It is very important to align investment resources with appropriate expected return on investment. Resources include email vs. phone call vs. face to face meeting.

    With today’s advanced technology and abundance of big data, companies are now able to calculate CLV for each individual customer. One company successfully doing this is Libring (www.libring.com). Full disclosure, I work at Libring. But I think the main take away Rob is that NPS was and still is helpful, but Customer Lifetime Value is a more inclusive and useful Saas metric.

    Reach out with any questions or just to talk anything Saas. @tombelhumeur

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