I love CJ’s suggestion about 1 month churn. This is helpful for product and also a great way to evaluate the marketing channels bringing in the best customers.
Two other things to track for SaaS 2.0
- Self- Serve to Sales Sold ratio: How many of your customers start on Self Serve (as in they’re paying on a credit card month to month) and then transition to sales sold. This is critical to evaluate for Product Led Sales motions
- Activation is a crítica metric. I also see a trend of companies breaking down activation into smaller stages so it’s simpler to evaluate earlier stage intent and product success. For example, if activation takes more than 3-7 days to complete, your marketing team will want to know which paid media channels to dial up or down depending on some of those early indicators.
Thanks, Francesca! Great points. Totally agree re: getting more granular around activation.
I tend to like "product-influenced" / "product-driven revenue" as an indicator of that self-serve --> sales, but ultimately it's the recognition that PLG is often the *starting* point for the customer & not the end state. Either way we get to the same place!
This is a masterclass in new-age operating metrics. You need to be aware enough to adjust your measurements to match the nuances of your business model. Awesome work!
Kyle this is another fab post — thank you!
I love CJ’s suggestion about 1 month churn. This is helpful for product and also a great way to evaluate the marketing channels bringing in the best customers.
Two other things to track for SaaS 2.0
- Self- Serve to Sales Sold ratio: How many of your customers start on Self Serve (as in they’re paying on a credit card month to month) and then transition to sales sold. This is critical to evaluate for Product Led Sales motions
- Activation is a crítica metric. I also see a trend of companies breaking down activation into smaller stages so it’s simpler to evaluate earlier stage intent and product success. For example, if activation takes more than 3-7 days to complete, your marketing team will want to know which paid media channels to dial up or down depending on some of those early indicators.
Excited to see what others suggest!
Thanks, Francesca! Great points. Totally agree re: getting more granular around activation.
I tend to like "product-influenced" / "product-driven revenue" as an indicator of that self-serve --> sales, but ultimately it's the recognition that PLG is often the *starting* point for the customer & not the end state. Either way we get to the same place!
Self serve to sales sold ratio is a new one for me, I'm bookmarking it to implement and track at my company. thanks for that!
This is a masterclass in new-age operating metrics. You need to be aware enough to adjust your measurements to match the nuances of your business model. Awesome work!
Appreciate it, CJ!
Really valuable stuff — thank you!