Gartner Research

Create a Virtuous Cycle of SaaS Growth With 3 Essential Key Performance Indicators

Published: 29 July 2019

ID: G00432880

Analyst(s): Kristin Von Manowski

Summary

Three key performance indicators must be balanced throughout the launch, scale and expand phases of a SaaS business model. Product managers, especially those new to SaaS, must understand how these metrics are effectively used to build, optimize and scale a successful positive-cash-flow SaaS product.

Table Of Contents

Analysis

  • The Virtuous Cycle of the SaaS Business Model
  • SaaS Growth Phases and Key Metrics
  • Launch Phase: Customer and Revenue Churn
  • Scale-Up Phase: Customer Acquisition Costs
  • Expand-the-Base Phase: Customer Lifetime Value (CLTV)
  • Recommendations

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