By Tim McCormick
Examining 7 key revenue growth performance and customer success metrics that are essential for scaling your SaaS business
For any growing business, capturing and analyzing financial data is critical for scaling and making informed decisions. With the right performance metrics and insights at your disposal, you won’t be blindsided by changes in the business. You can proactively address issues quickly and drive growth confidently. And when you’re ready to seek capital, you can deliver the metrics and insight into the financial health of your business that investors and venture capitalists will, without a doubt, expect.
But for B2B SaaS businesses, the approach isn’t one-size-fits-all. Traditional financial metrics can’t provide the insight you need because they simply don’t work for a recurring revenue business model. That’s because SaaS businesses aren’t static, and the volatility that comes with customer upgrades, downgrades, and cancellations is impossible to track using a spreadsheet. Spreadsheets can be valuable for ad hoc financial analysis and financial modeling, but they are poor at managing data.