Key Business Performance Indicators for SAAS companies by Pat Lynch

1. KPI’s for SAAS companies
Key Business Performance
Indicators
by Pat Lynch

2. Committed Monthly Recurring
Revenue
Track number of signed contracts each month and
have signed contracts on file
Track number of customers each month
Track average value of a customer each month
Note: 90% plus is good

3. Pipeline
Track the expected value of each potential
client by the probability of getting that
client
Track this number by sales person and region
Note: Overall number needs to be increasing

4. Customer Acquisition Cost
Track total cost of sales and marketing
expenses each month
Divide the above $ amount by the number of
deals closed to get cost per new client
Note: You need to get a customer on board
within 1 year

5. Cash Flow
Have monthly Cash flow document
Review the cash flow weekly
Show all customers by month in the cash flow
Note: You need to have adequate cash on
hand at all times and any shortages need to
be highlighted

6. Churn Rate
Measure the number of customers that do not
renew their subscription each month
Note: Do exit interview with customers that
do not renew. You will be amazed as to
what you will learn

7. Lifetime value of a Customer
Measure the average value per customer by
the average lifetime per customer less the
average cost to serve this customer
Note: This becomes important when you are
selling your business because you are not
selling 1 years revenue but multiple years.

8.  PatLynch who lives in Cork, Ireland uses
these slides to present to interested groups
wanting to understand KPI’s in SAAS
space. Pat can be contacted at
patlynch@stockmarkettraining.ie
or by phone +353872416668
Check my linkedin profile or web site
www.stockmarkettraining.com