Metrics That Matter: Driving Growth and Scale in SaaS and AI Businesses

Understanding the metrics that truly matter for your business

Posted by Daniel Brody on April 27, 2023 · 7 mins read

Metrics that Matter: Driving Growth and Scale for SaaS and A.I. Businesses

In order to focus your entire organization on growth and scale, it's crucial to identify the key metrics that matter most. These metrics can help you make data-driven decisions and optimize various aspects of your business. This blog post will discuss several vital metrics for both Software as a Service (SaaS) and Artificial Intelligence (A.I.) businesses.

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a metric that measures the cost of acquiring a new customer. By monitoring CAC, you can determine the most effective marketing channels and campaigns, allowing you to optimize your marketing spending. This metric is calculated by dividing the total marketing and sales expenses by the number of new customers acquired during a specific period.

Lifetime Value (LTV)

Lifetime Value (LTV) measures the total value a customer brings to your business over their entire relationship with your company. By tracking LTV, you can identify your most valuable customers and tailor your marketing and retention efforts accordingly. LTV is calculated by multiplying the average revenue per user by the average customer lifespan.

Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric that measures how likely customers are to recommend your business to others. By tracking NPS, you can identify areas for improvement and tailor your customer experience to increase satisfaction and loyalty. NPS is calculated by subtracting the percentage of detractors (those who rate your business 6 or lower on a scale of 0-10) from the percentage of promoters (those who rate your business 9 or 10).

Revenue Growth Rate

The revenue growth rate measures the percentage change in revenue over a given period. By tracking the revenue growth rate, you can identify which products, services, or marketing efforts are driving growth and scale in your organization. This metric is calculated by dividing the difference between the current revenue and the previous revenue by the previous revenue, then multiplying by 100.

Days to Sale

Tracking days to sale can provide valuable insights into the effectiveness of your sales process and help you identify potential areas for improvement. It measures the amount of time it takes for a lead to progress through your sales pipeline and convert into a sale. By tracking this metric, you can identify bottlenecks in your sales process and take steps to optimize it. Days to sale is calculated by averaging the number of days it takes for leads to convert into sales.


Engagement measures the extent to which users interact with your products or services. You can track this by measuring metrics such as user session length, click-through rates, and conversion rates. Monitoring engagement can help you identify areas for improvement and optimize your user experience.

Customer Retention

Customer retention measures how well your products or services retain customers over time. You can track this by measuring customer churn rate, repeat purchase rate, and lifetime value. By monitoring customer retention, you can identify potential issues and implement strategies to keep customers engaged and loyal to your business.

Viral Coefficient

The viral coefficient measures how many new users are generated by each existing user, also known as Product-Led Growth (PLG). It is calculated by dividing the number of new users acquired through referrals or sharing by the total number of existing users. A viral coefficient greater than 1 indicates that each existing user is generating more than one new user, which means that the product or service is experiencing viral growth. A viral coefficient of less than 1 indicates that the product or service is not growing virally and may require additional marketing or outreach efforts to drive adoption.

Regularly Review and Adjust Your Metrics

As your business evolves, it's crucial to periodically review and adjust the metrics you track. This ensures that you're focusing on the most relevant and impactful aspects of your business. To do this, consider conducting a quarterly or biannual review of your metrics, examining their effectiveness and relevance to your current business goals. This way, you can make data-driven decisions and optimize your strategies for continued growth and success.

Collaborate with Your Team

Involving your team in the process of identifying and tracking key metrics is essential for success. By fostering a culture of data-driven decision-making, you can ensure that everyone in your organization understands the importance of these metrics and how they contribute to the company's growth and scale. Encourage open communication and collaboration around metrics, and provide the necessary tools and resources to help your team make the most of the data available to them.

Utilize the Right Tools

Utilizing the right tools can make all the difference when it comes to tracking and analyzing your metrics. There are numerous analytics and data visualization tools available that can help you gather, analyze, and present your data in a clear and actionable way. Some popular options include Google Analytics, Mixpanel, and Tableau. Be sure to choose the tools that best align with your business needs and integrate seamlessly with your existing systems.

Set SMART Goals

When setting goals based on your metrics, it's important to make them SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). This ensures that your goals are clear, attainable, and aligned with your overall business objectives. By setting SMART goals, you can better track your progress and make informed decisions about how to allocate resources and prioritize initiatives.


In conclusion, the key to driving growth and scale in your SaaS or A.I. business lies in identifying, tracking, and optimizing the metrics that matter most. By focusing on these crucial metrics, you can make data-driven decisions, optimize your strategies, and ultimately, achieve success in your industry.

Ethics Emerging Tech
  • April 27, 2023
  • Brody, Daniel