In the world of SaaS business, there are a lot of specific words used to indicate an entire concept. To an outsider these words make no sense and it is very hard to understand even a basic conversation without understanding their meaning. Those words and acronyms are very important when creating financial models for SaaS business as they represent key metrics.
MRR? LTV? CAC? CHURN? What are these words? Those are the secret ingredients to any successful SaaS business, every member in the team of a SaaS company should know the meaning of those words and how they reflect on the company performance.
These metrics are at the basis of any SaaS financial model and should be carefully analyzed and observed over the lifetime of your startup.
Let's see together the meaning of these words and what they express and understand why they are so useful and valuable to a SaaS business.
Most of these words are acronyms and are used to describe a specific performance indicator of the business. These names are called KPI Key Performance Indicator (KPIs for plural).
We hope that you now have a better understanding of the key indicator of a SaaS business and why it is so helpful to know these terms.
If you think we helped, you want to put into action what you learned or you are trying to make an excel to calculate these KPIs, we have the perfect solution for you.
With Sturppy you can easily plan and track all of your most important KPIs from a single platform that helps you create financial models, business plans and projections for potential investors.
KPIs & Metrics
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