See the full infographic here.

Get the 2012 SaaS Metrics report here.

Today we are announcing the results of the second annual SaaS metrics survey results. Because it’s the second year that we are doing this survey, we were able to pickup some interesting trends:

SaaS Executives are Shifting Business Focus

Report reveals great dissatisfaction with common business metrics; customer-centric measurements sets the new standard

“The power of revenue has shifted from the business to the User. SaaS companies need to rethink their approach to measuring a healthy business. It’s no longer about looking at the top of the sales funnel, it’s about looking at the User’s interaction with your business and products in real-time,” said Guy Nirpaz, co-founder and CEO at Totango. “The SaaS market’s rapid maturation has taken the focus away from inward business metrics to external, customer-centric measurements that indicate happy, engaged customers.”

Some findings from this report:

  1. 68 percent of SaaS executives are unsatisfied with their existing customer success metrics and the tools and methodologies used to gather them.
  2. A greater number of executives, however, showed interest in measurement and metrics, with overall metrics adoption increasing by 20 percent, over 2011.
  3. 57 percent of executives interviewed understood the need for deeper customer-centric metrics to guide the future of their businesses.
  4. The top metrics of the future are focused on customer value and include: Product Engagement Analysis (39%), Churn (16%), Customer Lifetime Value (13%), Upsell (8%) and Net Promoter Score (5%).
  5. 71 percent indicated that they have moved their conversion measurement further down the funnel from Unique Website Visitors and Trial Signups to Free to Paid Conversion Rates.
  6. Surprisingly, only 50 percent of executives were measuring customer churn, despite its importance to recurring revenue streams.

“Measuring product usage helps SaaS companies provide the best possible customer experience. Unlike the old world of enterprise software, the best marketing, sales and customer support cannot make up for a bad product trial or on-going user frustration. E-commerce, gaming and other consumer-focused web businesses have known this for a while, and the B2B world is now catching up fast”, said Sam Boonin, VP Product Engagement, Zendesk.

See the full infographic here.

Get the 2012 SaaS Metrics report (released today) here.

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