Subscription-based companies have a whole extra layer of complexity in terms of measuring business performance, by comparison to traditional ones. From acquiring customers to onboarding them, from increasing their revenue stream to getting them to stick around with your brand, the SaaS funnel offers challenges at every step.
Knowing what KPIs to track can help reduce uncertainty and allows for the development of growth plans based on actual company data. Here at 2Checkout we want to help you simplify performance tracking for your business, with an inclusive set of resources on the most important SaaS metrics to track.
Our second installment, the newly published The Definitive Guide to SaaS Metrics: Onboarding and Activation will guide you through the customer onboarding and activation process and show you how to measure its success.
In an industry where onboarding is especially critical for customer experience, likely to determine whether they see value in your product or decide to churn, you need to give them the tools and knowledge to make their experience a successful one.
To measure the success of that customer journey, you should be measuring the following metrics for onboarding and activation flows:
The onboarding rate tells you how many new customers experience the value of your product for the first time.
Average onboarding time is how long it takes to onboard a customer and help them reach success.
Net active users are the customers who are actually using your product on a regular basis, not just logging in. This can be measured for different time periods and will help you determine which of your initiatives is working to keep your customers active and engaged.
Number of new clients are the number of new customers you are adding for a particular time period.
Number of net new clients are your new customers minus any you’ve lost to churn (you might also examine if they churn during or after onboarding, another insightful detail).
Signup to subscriber conversion rate: how many of your customers are willing to pay for your product or service and what are the factors that activate and convert them to subscriber status?
North Star metric: What links the value delivered to your customers to your business growth; the most important business indicator to monitor.
Read 2Checkout’s The Definitive Guide to SaaS Metrics: Onboarding and Activation eBook to better understand these metrics and how they are calculated. Get more from your SaaS’ marketing and sales strategies with our actionable resources.