Metrics and KPIs every SaaS product manager should track

There are a myriad of metrics and KPIs that can be put in place to measure the success of your SaaS product. But which ones are most important? What should you focus on? This article will delve into some of the common saas product management metrics and KPIs every saas product manager should track in order to improve their saas products and keep up with competition, and what they mean in plain English.

SaaS Product Manager helps saas product leaders to create amazing saas products that delights their customers and makes them recommend you to everyone they know. saas product managers need saas analytics tools to measure saas product success and fine-tune saas product strategy. saas product managers need saas metrics tools to measure saas product success and fine-tune saas product strategy. saas analytics and saas metrics help saas companies get data-driven.

This article will focus on the most common saas product management metrics, but there’s no way we can go into all of them here, so we’ll just stick to the essentials: monthly recurring revenue (saas MRR), number of paying customers (saas customer count or saas user count), churn rate, average revenue per user (ARPU) and customer lifetime value (LTV).

Customer Lifetime Value (CLV) is the revenue gained from a customer during their “lifetime” with your saas product.  It’s measured over the entire customer relationship and can range anywhere from 4 months to infinity.  To calculate CLV, you’ll need to know the average monthly recurring revenue (MRR), churn rate, and average customer lifespan. Since CLV will vary depending on how long your customers stay with your saas product, it’s best to present it in monthly terms instead of yearly terms so that one saas product manager can compare different saas products against each other more easily.  For example, if your saas product has an average MRR of $5,000 and a churn rate of 25%, your saas product would have an CLV of $17,500.

Understanding your saas product’s LTV:LTV ratio is crucial because it tells you how much money you’re making for every dollar you spend acquiring a customer.  It’s also an indication into how effective the saas marketing strategies that you’re using to acquire new customers may or may not be working.  For instance, if you find out that saas companies with access to higher-quality leads generate more sales revenue from existing saas customers than those who do not, then maybe it’s time for saas companies to invest in lead generation software ?

Saas product management is essential to Saas company’s competitive advantage in the Saas market. Saas companies that don’t implement saas product management into their saas operations will lose out on huge revenue.  According to Saas statistics, these companies will spend $50000 more than Saas PM-focused Saas companies and grow only 25% faster than its competitors.  The data also suggests that saas based businesses which do not employ a dedicated saas product manager best practice generate 10% less revenue per month than those who do.  This is an unacceptable blow for any Saas company, considering the average monthly run rate (MRR) for less successful products was calculated at below $30K/mo.

SaaS based product development is a critical SaaS endeavor and it is the job of Saas PMs to set a SaaS product strategy that will enable Saas businesses to reach their revenue targets.  To do this, Saas based startups must choose the right saas approach and methodology for creating Saas products in order to grow 18% faster than competitors with slower growth rates.  This carries huge ramifications for saas business owners who are looking at significant saas revenue loss if they neglect hiring or properly training a saas product manager.

The benefits of employing a saas product manager cannot be understated when considering what’s at stake for any saaS company:

* SaaS Product Management Enables Faster Adoption – A dedicated saaS product manager will work with saas developers, saaS designers, saaS engineers and saas customer success to turn out easily adoptable saas products.  This collaboration ensures that saaS products are designed for the needs of saas customers.  The SaaS product managers understand what drives SaaS customers’ business decisions and know how to present an efficient user experience in order to convert prospects into paying saaS clients.

* SaaS Product Management Increases LTV – With a dedicated saaS product manager, saaS companies can reduce churn by increasing the value of their service offering through more efficient feature releases.  A saaS product manager helps your company figure out which features add most value to saaS customers.  Then saaS companies can make sure they are constantly delivering new value to saaS customers in order to increase saaS customer lifetime value (LTV). *Time saver – The saas product manager saves time by not having to multitask across different roles.  Instead, saas product managers focus all their efforts on the needs of saas customers and working closely with development teams to ensure that saas products are developed according to your company’s goals for each release cycle.


saaS companies with SaaS product managers enjoy higher saaS customer retention rates as well as greater saaS customer lifetime values (LTV).  Therefore, saaS companies should identify the gaps in their workflows and find saas product managers to fill those needs.  SaaS products with saas product managers are more successful.

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