SaaS vanity metrics, principii antreprenoriale, procese decizionale

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Ce masuram in SaaS (product marketing)

Vanity metrics versus actionable metrics, ce conteaza in SaaS si cum sa identifici corect ceea ce masori:

“For your product marketing efforts to be successful, it’s crucial to understand the difference between vanity metrics and actionable metrics. So, let’s find out how you can do that to get actionable product growth insights:

1. A vanity metric in SaaS makes your business appear impressive on the outside but actually doesn’t provide insights into business performance.

2. A vanity metric lacks substance. It is overly simplistic to monitor and measure and is not contextual.

3. An actionable metric provides actionable information about business performance and helps you form product growth strategies based on it.

4. In the era of product-led growth, actionable metrics help businesses understand whether their products satisfy customer needs and make improvements whenever needed.

5. A few examples of vanity metrics are the number of free trial users, total customers acquired, and the number of total users. Instead, you should use the trial to paid conversion rate, customer acquisition cost, and customer engagement score.

6. The four key actionable metrics are activation rate, monthly recurring revenue, customer churn rate, and customer retention rate.

7. The customer activation rate measures how many of the trial users performed the key in-app actions and thus got value from your product.

8. Monthly Recurring Revenue (MRR) is the total revenue you earn each month from subscriptions.

9. The customer retention cost is a measure of the customer retention rate that measures how much you spend per user to retain them for the long term.

10. The customer churn rate is the opposite of the retention rate and tells you the amount of revenue loss from canceled subscriptions.”

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