How do you measure SaaS product performance metrics?

1 Customer satisfaction

Customer satisfaction is a measure of how happy your customers are with your product and service. It reflects the quality and value of your product, as well as the support and communication you provide. Customer satisfaction can be measured by various methods, such as surveys, ratings, reviews, testimonials, referrals, and feedback. You can use tools like Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), or Customer Effort Score (CES) to quantify customer satisfaction and identify areas of improvement.

2 Customer retention

Customer retention is a measure of how loyal your customers are to your product and how likely they are to continue using it. It reflects the fit and relevance of your product, as well as the trust and relationship you build with your customers. Customer retention can be measured by various metrics, such as churn rate, retention rate, renewal rate, customer lifetime value (CLV), or customer loyalty index (CLI). You can use tools like cohort analysis, segmentation, or retention curves to monitor customer retention and optimize your retention strategies.

3 Customer acquisition

Customer acquisition is a measure of how effective your marketing and sales efforts are in attracting new customers to your product. It reflects the awareness and demand for your product, as well as the conversion and onboarding of your prospects. Customer acquisition can be measured by various metrics, such as cost per acquisition (CPA), customer acquisition cost (CAC), return on ad spend (ROAS), or customer lifetime value to customer acquisition cost ratio (LTV/CAC). You can use tools like attribution models, funnel analysis, or A/B testing to track customer acquisition and improve your acquisition tactics.

4 Product usage

Product usage is a measure of how frequently and intensely your customers use your product and its features. It reflects the engagement and adoption of your product, as well as the value and satisfaction it delivers. Product usage can be measured by various metrics, such as active users, sessions, page views, feature usage, time spent, or stickiness. You can use tools like analytics platforms, heat maps, or user feedback to measure product usage and identify usage patterns and trends.

5 Product quality

Product quality is a measure of how reliable and bug-free your product is and how well it performs under different conditions. It reflects the functionality and usability of your product, as well as the user experience and satisfaction it provides. Product quality can be measured by various metrics, such as error rate, crash rate, uptime, response time, or customer support tickets. You can use tools like monitoring systems, testing platforms, or bug tracking software to measure product quality and resolve issues quickly.

6 Product innovation

Product innovation is a measure of how creative and competitive your product is and how well it meets the changing needs and expectations of your customers and the market. It reflects the vision and strategy of your product, as well as the feedback and research you conduct. Product innovation can be measured by various metrics, such as feature releases, product updates, user testing, customer feedback, or market share. You can use tools like roadmaps, prototyping, or beta testing to measure product innovation and validate your product ideas.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?