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Saastr

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Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days?

  • In the early days of a SaaS company, there are 5 key metrics that matter the most.
  • These metrics include ARR (Annual Recurring Revenue), ARR Growth Rate, Burn Rate, True Customer Happiness (measured by NPS), and Net Revenue Retention / Churn.
  • Other metrics like CAC (Customer Acquisition Cost), CLTV (Customer Lifetime Value), and Burn Multiple are important, but not as critical in the early stages.
  • The primary focus should be on achieving product-market fit, ensuring customer satisfaction, and managing cash burn effectively.

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