Analytics appliances – a reason for a headache or a pain relief pill?
Sweet dreams are made of high revenue and customers’ satisfaction if you run a SaaS project. But how do you know the exact number of zeros coming to and out of your account? How can you be sure your clients use the software you offer and do not roll their eyes? Well, you recall math lessons from college and track. Why?
Tracking is a way of noticing the negative and positive trends composed of tiny details you don’t see with your bare eyes. When you record each day during the month, you understand that you undersleep and drink too much coffee and this is the reason for your tiredness. When you track your expenses, you may figure out that each week on Monday you spend too much money on sweets because this is the day when you feel stressed out. Knowing the results of your experiment, you can prevent chronic stress and budget holes by throwing away a jar of coffee and scheduling yoga class. It is easier to solve a few problems and implement minor changes and prevent losses.
Likewise, in SaaS, and any other business. When you track the most important metrics, you will identify the negative tendencies if there are any. That is why clients’ reactions are essential. It is the light, helping you to go through the darkness without damaging your legs and the objects around. That’s why companies strive so much to gather reviews. However, people do not always enjoy spending time giving feedback. They don’t like something – they stop using the tool and leave you with no explanation. Here’s why you need analytic tools – to consider all the factors, influencing your customer’s behavior. These tools are a necessary part of all marketing strategies because every sale on the Internet is an experiment. Offline you receive the opinion – sudden smiles and frowns point to the quality. On the Internet, you are half-blind. However, if you get a great command in using analytics tools, you will base your planning and strategies on something more than just senses. Scientifically gathered data will back you. If you don’t know how to use it – it’s a headache. If you do, it’s a relief pill.
What are the symptoms? Top saas metrics and estimation criteria
As soon as you understand that, okay, you do need to track many questions that occur. How? Where? When? What?
HOW? Regularly (weekly/monthly/yearly) and with the help of the tools, we describe in a few abstracts.
WHERE? On the platforms. Many analytics apps are SaaS products themselves. So, the only thing you’ll need is an Internet connection. Zero setups, constant customer support if you don’t know something and the ability to shift to another platform is the project grows.
WHEN? The sooner the better!
WHAT? The main metrics are churn rate, ARR & MRR, LTV, CAC, and COGS.
Now, if you already understand it all – keep reading and refresh your memory. If all these words and contractions confused, you – breathe in and breathe out. Remember – every difficult term stands for simple things.