7 SaaS KPIs You Need to Track in 2017
By Ryan Malone
The software-as-a-service (SaaS) industry has experienced exponential growth over the past several years and shows no signs of decline. Even the poorest segment is projected to see a compound annual growth rate of 19.7 percent through 2019. And by 2020, it’s projected that SaaS deployment will be more than 25 percent greater than traditional software deployment.
SaaS is going nowhere soon. However, with rapid growth comes the potential of market saturation. In order to stand out, SaaS vendors need to be smart about their marketing strategies. In fact, the inability to market products was cited as a cause for 14 percent of startup failures in a recent survey.
While you may be familiar with the concept of key performance indicators (KPIs), there are a number of unique aspects to consider when marketing your SaaS product:
1) Qualified Marketing Traffic
You already know the importance of website traffic. Reporting on unique visitors and traffic per channel should already be part of your reporting routine; however, as a SaaS company, it’s important to dive a bit deeper. Most SaaS websites have a log-in link on the site, usually in the top navigation. Providing a cloud-based solution, customers need to log in, which means they need to revisit your website. As your app users increase, so will your overall traffic. This can yield false data, ultimately showing higher traffic growth due to marketing initiatives, which may not be the case.
It’s important to track these returning customers independently, as they can skew your traffic numbers. As a marketer, it is important to track what percentage of visitors are already customers and which are qualified marketing traffic. Being able to differentiate between these two groups will allow you to set actionable traffic KPIs and build a solid traffic-generation plan.
There are a number of ways to identify this traffic as returning customers. One way to do so is to use event tracking to count each time a visitor reaches a log-in screen or clicks the link in the navigation. Another way is to use in-app analytics to identify log-ins and usage per month as well. Being able to separate these two data points will allow you to accurately track traffic growth each month, with a keen eye on qualified marketing visitors, as opposed to returning customers.
2) Leads by Lifecycle Stage
Anyone who’s been in the marketing or sales game for any amount of time knows the importance of leads. A basic lead is a prospect who’s starting to do his or her research. However, breaking leads into subcategories outlines exactly where they are in the buying process.
Marketing qualified lead (MQL): A prospect who has taken additional research steps, such as downloading ebooks and returning to your website.
Sales qualified lead (SQL): A prospect who has moved beyond the initial research phase, is most likely evaluating vendors, and is worth a direct sales follow-up.
The sales process for SaaS products can range anywhere from a few days to close to …read more
Source:: HubSpot Blog