Tracking the exact metrics is a very important part for a successful business. Big data is so important for helping organizations achieve this goal. When a company is offering software as a service, the need for tracking certain metrics becomes dreadful, and in this post, we are talking about those metrics. Here you will read about four metrics that are so crucial for the SaaS business. Let’s go into detail about the use of big data for meeting these needs – the 4 most important metrics:
Average Revenue Per Account (ARPA):
This is one of the most critical SaaS metrics — average revenue per account or commonly known as average revenue per customer (ARPC). The main reason behind why this metric matter is because it helps companies to identify the profits that they are making from every individual customer that is connected to them. How does it work? Average Revenue per Account is equal to Total Monthly Recurring Revenue divided by Total Number of Accounts.
Lead Velocity Rate:
Lead velocity rate is the metric that helps you identify the growth percentage of qualified leads from month to month from the big data. The basic idea is to track your pipeline’s development, as in how many qualified potential customers your organization is currently trying to convert into actual customers. How it works? Lead Velocity Rate is equal to qualified leads in current month minus qualified leads in last month divided by qualified leads in last month into 100.
Customer Health Score:
Speaking of what this big data metric means, customer health score is a value that indicates the long-term chances of a customer to withdraw their subscription with you or become a high-value customer instead. And coming to how your organization can track this, scores like this don’t come with a general formula that can work for everyone. The customer health score is best when customized based on the factors associated with the industry and the specific organization.
Product Engagement Score:
The product engagement score is the metric that tells you about the engagement quotient of your website and mobile apps. The ability to engage appropriately with customers is of high value in 2020. It’s like, everybody is looking for a chance to be bored, and the moment they get it, they lose interest in your content, website or mobile app. In times like these, it becomes crucial to track product engagement scores so you can work on the weak areas and make sure that your customers don’t lose interest easily.