3 Most Important Terms You Need To Know About SaaS Growth!

Published on March 2nd, 2021

Siddhita Upare
Co-founder, ruttl

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Hey everyone!

Welcome to a brand new week filled with hustle! 🥤

hustle

Last week, we did Facebook pixel integration for ruttl.com. The analytics platform is definitely challenging but with efforts, we hope to catch up with all those technical terms eventually.

Since we know how intimidating it can get to come across such new jargons, we thought of the sharing the most important "growth metrics" every founder needs to know while growing their own SaaS products!

Here are 3 important metrics to know about -

1. ARR and MRR

MRR is the overall monthly recurring revenue generated by your product while ARR is the overall annual recurring revenue generated by your product.

Make sure your pricing strategy is on point to ensure that you're ARR and MRR are in profitable state.

2. Customer Acquisition Cost (CAC)

The total cost of acquiring each customer, after spending on marketing, sales and everything else. Try to keep this as low as possible by finding efficient and better ways to gain new customers. For instance, word of mouth or referral programs.

If you are curious about CAC, we would suggest you to read this article.

3. Customer Lifetime Value (CLV)

This is the total revenue each customer gets you, over the entire lifetime period they are using your product. Have an excellent customer re-engagement strategy such as email marketing to maximize this value.

If you want re-engagement emailer ideas, make sure to refer to reallygoodemails.com.

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