Subscription-based businesses are different from traditional transaction-based ones, as they rely on recurring revenue. Therefore, customer retention is essential for ensuring a steady revenue stream. The acquisition of new customers must be balanced with the costs involved in attracting them as well as in developing and providing the SaaS product. Therefore, SaaS KPIs will usually be connected to the main stages of the subscription lifecycle:
- Onboarding and activation
- Monetizing the customers
- Renewal and retention
Here's our complete guide to the SaaS metrics that matter - what they are, what they mean, and how to find out if you're doing well with yours.