By combining simplicity and affordability, there is no surprise that the SaaS industry has boomed in recent years. But with popularity comes competition. Using SaaS reports effectively will allow you to stay on top of your data and stay steps ahead of your competition. Keep on reading to find out everything about SaaS reporting.
What are SaaS reports?
Software as a service, widely known as SaaS is a software distribution model in which a cloud provider hosts applications and makes them available to Internet-end users. This type of service is usually available through subscription. SaaS reports can also be called subs reports because it helps you monitor your subscription. However, with SaaS reports you can monitor much more than your subscriptions, for example, cash flow. In short, SaaS reports enable you to track and get a clear picture of your SaaS metrics. Continue reading to find out what metrics you must track!
Why are SaaS reports important?
As mentioned, SaaS reports allow you to have a clear overview of the metrics you are tracking. By doing this, you can now see where your company is positioned on the market, and how to improve it. Knowing where you as a business stand, makes it easier to plan and forecast and make better data-driven decisions. By having good SaaS reports you are able to monitor your performance, identify trends, improve customer experience, and increase revenue.
How to conduct SaaS reports?
In the SaaS space, the key to success is always being on top of your and the industry’s data. So knowing how to conduct a good SaaS report is a must. Here you will find a step-by-step on how to do it.
Find out what you want to track.
Finding out what you want to track or to be more precise, identifying your KPIs is crucial for your SaaS reporting since your whole report will be based on them. Keep on reading to find out about the most common and valuable KPIs.
Choose a SaaS reporting tool that will make your job easier.
SaaS reporting tools are supposed to make your SaaS reporting more simple and more practical. There are a lot of options on the market, some are free and some are paid, but the most important factor that you need to look out for is that tool can bring you data that you will be able to take action on. If you are still looking for the perfect tool then Plecto just might be the thing you are looking for. Plecto allows you to track your data and KPIs, visualize them and make automated reports.
Automate the reporting process
By choosing to do this you will save yourself a lot of time and effort. With Plecto you can schedule to have your reports ready on a weekly, monthly, quarterly and even hourly basis, so there is no need to spend as much time on manual tasks.
Go over your reports
When the report is ready, review it and see how the results match the targets you originally set. Doing this will give you an insight into what needs to be improved and help you make data-driven decisions.
Inform others of the results
In any type of industry or company, communication is essential. By sharing the results with your team, everyone will be informed and know what to strive for and on top of that they will be motivated and feel like a part of success. So, don't hesitate to share reports with your team.
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What to track in your SaaS reports?
In order to get the full benefits of SaaS reports, you first have to have the relevant metrics to track. There are so many metrics out there, so picking the right ones that make the most sense to your company is super important. Here are some of the must-have metrics you should be tracking in your SaaS reports:
MRR and ARR
Monthly Recurring Revenue (MRR) and annual recurring revenue (ARR) are essential metrics for your business. They measure how much revenue your software generates on a monthly - MRR and yearly - ARR basis, even if you don’t have multiple pricing tiers. By tracking them you will gain an understanding of the health of your business. If you're looking to boost your MRR and ARR, enlisting the services of an SEO agency for SaaS is a strategic move. SaaS businesses thrive on a steady stream of organic traffic and conversions, and a specialized SEO agency understands the unique challenges and opportunities in this space. They can tailor their strategies to improve your website's visibility, drive targeted traffic, and ultimately increase your revenue.
User Engagement
User engagement helps you track how active users are on your software. This metric is helpful because it gives you an understanding of your software’s impact on users, your software’s popularity, and what areas can be improved.
Churn rate
Churn rate measures the number of canceled subscriptions on your software. By knowing this information you can identify your weaknesses -and understand why your customers are leaving you. By knowing your weaknesses you can improve them and reduce churn. On top of that, you can also get insights into the performance of your customer retention strategies.
Conversion rate
The conversion rate tells you the percentage of people who have completed a desired action, such as buying your product. So if your sales funnel needs improvement you will see it with this metric. It shows you how your product or service is perceived by customers and how much potential value it can provide for them. It also helps you calculate how many visitors you need on your website.
CAC
Customer Acquisition Cost (CAC) gives you data on how much money your company spends to gain a customer. Knowing this, it’s easier for you to make adjustments to your marketing and sales strategy.
ARPU
Average Revenue Per Unit (ARPU) as the name suggests, it is easy to understand what this metric is about. Namely, this metric tells about how much revenue was generated from customers on average. This metric is something you will be able to find on every great dashboard since it’s something that helps you improve your bottom line in a data-driven and innovative way.
