A Guide To Using Metrics To Triage Your Subscription Business
SaaS Metrics are much more than just numbers to be delivered to management, the board or investors. Used properly, they provide operational insight, enable decision-making, and help you run your business.
Let’s set up a scenario. You’re the head of finance for a SaaS business. You’re working through some high-growth, hiring and funding. It’s April 2017 and you’re coming up for air after busy 2016 Q4 and 2017 Q1. It’s time to report some numbers to your board.
Here’s the backstory we’re going to be working from:
- At the end of Q2 2016, we closed a round of series A funding.
- In Q3 2016, prior to that busy 2016 Q4, we leveraged our funding and hired on 2 sales reps slightly ahead of plan.
- They ramped up during Q3 and Q4 and were fully productive starting in 2017 Q1.
- We also have a large portion of our book of business set to renew at the end of 2017 Q1
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