Top Marketing Metrics That SaaS Businesses Should Track

full post: https://ift.tt/39wTEmP. Time spent on siteMarketing, especially content marketing, is all about value. If you believe that you can give value and people who engage with your content see value in it, then you are on the right track. The best way to track this is time spent on site. If your visitors see the value, they will spend more time on your site.2. Bounce RateIn short, a bounce happens when someone sees your home page and just leaves. Your goal should be to keep your customers as long as possible. To achieve it you can add links to other articles on your content. If your users click on the article you link on your content, the bounce rate will decrease while time spent on site will increase.3. ChurnChurn is the number of SaaS customers that cancel their recurring revenue services. People are hiring experts to measure churn and their reasons nowadays. It is really important because according to statistics: It will cost you 16 times more to bring a new customer up to the same level as an existing customer. As a matter of fact, the more customers a business retains, the more revenue it makes!For example, the Harvard Business School report claims that on average, a 5% increase in customer retention rates results in a 25% - 95% increase in profits - 65% of a company's business comes from existing customers!To calculate the churn rate, you can take the total number of customers you lost in the month you’re reporting on. Divide that by the number of customers you had at the beginning of the reporting month. Then, multiply that number by 100 to get the percentage. For example, if you lose one customer in a month that you started with 100 customers, that would equal a churn rate of 1 percent.4. Customer Lifetime Value (CLV)Customer Lifetime Value (CLV) is the average amount of money that your customers pay during their total time of engagement.To calculate CLV, first, you will need to calculate your Average Customer Lifetime. To do this, take one divided by the customer churn rate. For example, let’s say your monthly churn rate is 1%. Your average customer lifetime would be 1/0.01 = 100 months.Then you need to multiply Average Customer Lifetime by your average revenue per account (ARPA) over a given period. To do this, take your total revenue divided by your total number of customers. For example, if your company brought in $100,000 in revenue last month off of 100 customers, that would be $1,000 in revenue per account. Customer lifetime value depends heavily on the customer experience you offer to your customers. Here you can see how Discord's tactics to offer a top customer experience and beat their competitors, such as Slack.Finally, this brings us to CLV. You will now need to multiply customer lifetime (100 months) by your ARPA ($1,000). That brings us to 100 x $1,000, or $100,000 CLV.5. Customer Acquisition Cost (CAC)Customer Acquisition Cost (CAC) is the amount of money that costs for you to acquire a customer.To calculate CAC, you need to calculate all your marketing spending and divide it by the customers you acquired during that period. If you spent 250 Dollars on marketing and acquired 10 new customers then your CAC is 250/10 = 25. see hubwealthy.com/wealthy