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The Right Way to Calculate 3 Critical SaaS KPIs

by | Podcast, Reporting

calculating saas kpis

Data Talks, Episode 16

Data Talks is Exago’s podcast on all-things business intelligence, analytics, and application software. Did you know there are 43 different ways to calculate churn? This month, we get some much-needed guidance from CloudKPI co-founder Maeve Kneafsey on counting customers, measuring churn, and calculating customer acquisition cost (CAC) — it’s not as straightforward as it sounds. Should you count customers by contract, for example, or by logo? Should you keep your eye on both counts, and if so, to what end? We explore these and other nuances around summarizing SaaS performance.

Timestamps

Segment 1: BuildingVisualizations for Clients

(2:00) How Maeve and her team researched KPI methods and best practices.

(4:13) A company’s metrics should serve the company first and foremost, not VCs.

(5:50) What is CloudKPI?

(8:30) The importance of calculating KPIs consistently.

(9:20) Counting customers.

(15:10) Calculating churn.

(18:20) Distinguishing churned customers from “limbo” customers.

(20:30) Analyzing churn rates through cohort analysis.

(23:50) Contract renewal grace periods and their impact on churn.

(31.30) Calculating CAC.

Segment 2: What We Are Nerding Out About

(42:40) Maeve: A mindful application of Slackbot.

(44:30) Nicole: SEMrush!

(46.00) Alex: a particular robot vacuum!

 

Featured Guest

Maeve Kneafsey

Maeve Kneafsey is a serial entrepreneur hailing from Dublin, Ireland and co-founder of predictive analytics solution CloudKPI (USA and Ireland), which is her fourth successful startup. Maeve’s an international speaker on SaaS metrics and digital marketing strategy. She can be found on LinkedIn.

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