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Product Performance Metrics

How do your customers define success? How can you qualify and quantify that?

How well do the outcomes using your product or service meet expected rewards for cost and effort?

Context​

Growth​

What levers can you pull to change direction and speed?

Is the effort worth the reward?

Retention​

  • Dollar Retention
  • Logo Retention

Sales Efficiency​

  • New Sales ARR vs S&M Expense
  • CAC
  • New ACV vs CAC
  • CAC Payback
  • Magic Number

Margins​

  • Gross Margin
  • LTV

Capital Efficiency​

  • Burn Multiple
  • Hype Ratio

Engagement​

  • DAU/MAU
  • DAU/WAU

SaaS Metrics​

Measure what matters to scales a Software as a Service (SaaS) company.

  • MRR/ARR
  • Retained
  • Expansion
  • New Sales
  • Resurrected
  • Contraction
  • Churned
  • CMGR
  • Customer Concentration

Questions​

Which metric type — leading indicator, lagging indicator, or health signal — is most commonly confused with the others in business performance analysis?

  • At what measurement frequency does tracking this metric produce anxiety that interferes with the behavior it's designed to improve?
  • How do you distinguish a metric that's genuinely predictive of outcomes from one that's simply correlated with other metrics you already track?
  • Which metric would you stop tracking if you could only keep five — and does that reveal which metrics are actually load-bearing?