Focus on one key metric that reflects your business health. For SaaS, net revenue retention is crucial. It combines growth and churn into one simple figure. If your existing customers increase their spending faster than you lose new ones, you are in a good spot. Everything else should align with this metric. Only track what directly impacts it, and save troubleshooting for later.
Start simple. Pick 3-4 metrics that actually matter for decisions and ditch everything else.
Early stage? Watch monthly recurring revenue, churn rate, and customer acquisition cost. That’s it. Get fancy later.
I’ve watched teams burn weeks on perfect dashboards instead of talking to users. Doesn’t matter what framework you use if you’re not acting on the data.
Mixpanel’s good for user tracking. Google Analytics covers web analytics. Start there and only add stuff when you actually need it.
Been through this exact confusion with three different apps. Here’s what actually moved the needle.
First month, track your funnel conversion rates at each step. Sign up to trial, trial to paid, paid to month 2. Find your biggest drop off point and fix that first.
Once you plug the leaks, shift to unit economics. Customer acquisition cost vs lifetime value ratio tells you if you can scale profitably. Aim for 3:1 minimum.
This video breaks down the key SaaS metrics way better than I can explain:
Skip the fancy frameworks until you hit $10k MRR. Before that, you’re just measuring problems you already know exist. Better to spend time fixing them instead of tracking them perfectly.
Retention is king. If users don’t stick around, nothing else counts. Focus on weekly active users, day 1/7/30 retention rates, and how fast users achieve their first success. Many founders chase new users while neglecting the real problem - users try the product once and leave. Get retention sorted first, then shift attention to revenue per user and payback periods. Keep it simple. Choose the tools that help you identify issues and resolve them quickly.