Discover 3 Underrated SaaS Metrics that Can Skyrocket Your Success

Most founders or leaders of high-growth SaaS companies are laser-focused on the well-known industry metrics like Monthly Recurring Revenue (MRR), Customer Acquisition Cost (CAC), and Churn Rate. These metrics are critical, but there are lesser-known yet incredibly powerful SaaS metrics that can truly transform your business. 

Here, we explore three underrated SaaS metrics that, when leveraged correctly, can be game-changers for your success.

1. Customer Engagement Score (CES)

What is it? Customer Engagement Score (CES) is a composite metric that evaluates how engaged and active your users are with your product. It combines various indicators like login frequency, feature usage, session duration, and in-app activities.

Why it matters:

• Predicts retention: Highly engaged customers are more likely to stay loyal, reducing churn rates.
• Identifies upsell opportunities: Engaged users are more likely to adopt additional features or upgrade their plans.
• Improves product development: Understanding which features are most used can guide future enhancements and prioritize development efforts.

How to use it:

• Track engagement trends: Regularly monitor CES to identify patterns and take proactive measures to increase engagement.
• Segment users: Group users based on their engagement scores to tailor marketing and support strategies.
• Correlate with other metrics: Analyze how CES relates to MRR and Customer Lifetime Value (CLV) to understand its broader impact.

2. Net Revenue Retention (NRR)

What is it? Net Revenue Retention (NRR) measures the revenue growth or contraction from your existing customer base, factoring in upgrades, downgrades, and churn. It is expressed as a percentage and calculated by taking the starting MRR, adding expansions, subtracting contractions and churn, and dividing by the starting MRR.

Why it matters:

• Growth from existing customers: A high NRR indicates that your company is growing revenue from the existing customer base, which is often more cost-effective than acquiring new customers. 
• Customer satisfaction indicator: Positive NRR signifies that customers find value in your product and are willing to spend more over time.
• Investor appeal: High NRR is attractive to investors as it demonstrates stability and growth potential without heavy reliance on new customer acquisition.

How to use it:

• Set benchmarks: Aim for an NRR of over 100% to ensure you're growing revenue from your current customers.
• Focus on customer success: Enhance support and success initiatives to boost expansions and reduce downgrades.
• Monitor monthly: Keep a close eye on NRR to quickly identify and address any negative trends.

3. Time to Value (TTV)

What is it? Time to Value (TTV) measures the time it takes for a customer to realize the value of your product after purchase. It starts when the customer signs up, and ends when they achieve their first significant success with your product.

Why it matters:

• Accelerates customer satisfaction: The quicker a customer sees value, the more satisfied they will be, leading to higher retention rates.
• Reduces churn: Shorter TTV means customers are more likely to stick around and continue using your product.
• Enhances onboarding: Focusing on TTV can help streamline and improve your onboarding processes.

How to use it:

• Optimize onboarding: Implement a well-structured onboarding process to ensure customers quickly understand and use key features.
• Educate customers: Provide resources like tutorials, webinars, and customer support to help users achieve their goals faster.
• Measure and iterate: Regularly measure TTV and gather feedback to continuously refine your onboarding and customer success strategies.

Focus on These SaaS Metrics with Decipad

Decipad allows founders and other leaders to effectively set, track, and share these underrated SaaS metrics. 

By keeping them front-and-center, and showing teams the inputs and permutations connected to these metrics, you can elevate your growth and sustainability to a whole new level. 

Check out Decipad’s templates to experience for yourself how profoundly impactful it is to see stunning visuals combining numbers and narrative in one place. Our experts will guide you through the setup to ensure your data storytelling needs are met, and that you’re set up for success. 

Conclusion: Leverage SaaS Metrics Effectively

While metrics like MRR, CAC, and Churn Rate are essential for any SaaS business, incorporating CES, NRR, and TTV into your analytics can provide deeper insights and drive more strategic decisions. 

By leveraging these underrated metrics with Decipad, you can enhance customer satisfaction, improve retention, and ultimately skyrocket your success.

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