Learn How the Best Recurring Billing System are Helping SaaS companies Track these SaaS KPIs and Metrics

During these uncertain times, keeping track of your growth matters but you need to track the right metrics to save yourself from losing customers and sales. SaaS businesses are facing a lot of turbulence currently due to the global pandemic. While everyone is debating what future economy would look like, SaaS businesses are relying on their Recurring Billing System as their best bet to assess the impact of this pandemic on their business. But why is it important to track key performance indicators especially during these times? With the threat of global economic decline, your business needs to mitigate the impact of this pandemic on its growth. In our opinion, the best recurring billing systems in the world are those which are helping companies keep track of their customer subscriptions. SubscriptionFlow believes in value-led growth which is more sustainable and based on customer satisfaction. But we are not analyzing business performance here. Our goal is to help SaaS businesses understand the importance of key performance metrics and how the Best Recurring Billing System in the world just like SubscriptionFlow contributes to it.

Rather than tracking your metrics in the annual quarter and delaying the process of mitigating damages, the economic uncertainty has forced SaaS businesses to stay ahead of weekly updates. Although many metrics fall under the umbrella of key performance metrics, it is easy to get confused and overwhelmed. To avoid this dilemma, we have underlined which metrics are vital for your survival and how Best Recurring Billing Systems are helping their users track them. First of all, you need to choose which metrics which will directly give you an insight into how your business is performing. Learning which metrics to track is just as important because it is impossible to track dozens of metrics at once. Against your business objectives, measuring these metrics will allow you to visualize growth and see which areas need improvement. Because tracking metrics shows which sales, marketing, and strategic business strategies have been successful, and once your crisis management tools are implemented, SaaS metrics will show you fruits of the seeds you have sown. So if you want to learn which subscription plans are more successful, or why your churn is increasing then you need to manage SaaS metrics.

Important SaaS metrics for businesses to track.

Monthly Recurring Revenue (MRR):

Monthly recurring revenue gives SaaS companies a fair representation of how much revenue has been earned from subscriptions in a month. It shows you how much money your customers are bringing in as a result of monthly renewals. For businesses whose revenues rely on monthly subscriptions and it shows how your business is growing. There are different types of MRR including subscriptions from new customers, upgrades, revenue lost due to cancellations/downgrades as well as conversions from free trials. While many industries have seen downgrades in their subscription, for example, gyms, many have been seen a rise in monthly subscriptions like online learning or video conferencing software. If you are witnessing a dip in your monthly recurring revenue/MRR, you should focus on changing your pricing strategy or discounts to tackle voluntary cancellations.

Churn Rate:

Churn is what every SaaS business fears. It is defined as the number of cancellations both voluntary and involuntary from your customers every month. When you are looking at your reporting dashboard, gross churn gives you an overall picture of how successful your products and subscription plans are. So once you have tracked your customer churn or churn rate on a monthly or weekly basis, what to do next? Well, you need to decipher what your churn metrics are telling you. First of all churn rate and increase in it, indicates that your customers are downgrading their subscription plans or canceling them. It is important to earn your customer’s trust which you can do by offering freemium plans, allowing them to pause or postpone subscription for some time. SaaS businesses should offer pauses rather than canceling subscriptions. On the other hand, involuntary takes place due to failed payments which Best Recurring Billing Systems like SubscriptionFlow can help your business with in the form of smart dunning. This tool allows users to send automated email reminders after your payment gateway cannot process payment. SaaS businesses can easily set workflow for sending reminders without them having to worry about it.

Customer Acquisition Cost:

As absolutely important metrics to track, customer acquisition cost helps businesses measure how much your business is spending on your customers. Essentially, it tracks how much return on investment is being received from your marketing and sales strategies. Moreover, you can improve your customer acquisition costs by reducing abandoned carts, easy checkout panel, and onboarding process. With the improvement in these areas, your CAC will improve. Sometimes, when users are not receiving value in your products although your subscription plans are performing well. For this purpose, CRM processes need to be improved which SubscriptionFlow has helped many users with. Our customer management system allows sales reps to easily manage the sales process, automated email lists, blogs, and newsletters which will allow your customers to see value in your products. All in all, SubscriptionFlow has seen how only the Best Recurring Billing Systems can track SaaS metrics via reporting dashboard for businesses. Without these metrics, success is uncertain just like our current global situation.