Remove Metrics Remove Retention Remove SaaS
article thumbnail

DAU/MAU is an important metric, but here’s where it fails

Andrew Chen

DAU/MAU has been a popular metric because of Facebook, which popularized the metric. This metric was always impressive for Facebook because it’s always been high. DAU/MAU isn’t the right metric there. In fact, for SaaS, it seems to be the exception not the rule. That’s awesome!

Metrics 106
article thumbnail

Don't Let Your North Star Metric Deceive You

Brian Balfour

We’ve all heard the rallying cry of the “One Metric That Matters”. But blindly buying into the concept of the one metric that matters (OMTM) is a fatal oversimplification. The one key metric can make you think that is not important.” 4 Reasons OMTM is Misleading Even the name “One Metric That Matters” is problematic.

Metrics 105
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

How to Measure HR Effectiveness with 12 Key Metrics

15Five

According to Gartner, 58% of organizations say a lack of relevant metrics to track HR progress is one of the top barriers to effective strategic planning. Most other business functions have a standard set of metrics that show the effectiveness of their team and how they’re contributing to the company’s bottom line (e.g.,

Metrics 105
article thumbnail

6 User Adoption Strategies for Growing SaaS Businesses

Help Scout Leadership

For B2B SaaS companies, user adoption is one of the most important elements to get right in order to grow sustainably. Appcues found that activation (when customers experience the core value of the product) is the most important pirate metric for SaaS growth. more than the same percentage increase in retention.

SaaS 94
article thumbnail

The red flags and magic numbers that investors look for in your startup’s metrics – 80 slide deck included!

Andrew Chen

Dozens of angel investments and advisory roles in SaaS, marketplaces, etc. While there were people thinking about user acquisition and ad tech, and some early consumer teams (like Eric Ries’s IMVU) thinking about cohort curves to mention retention, it hadn’t been centralized into a team that could execute against it. This is great.

Metrics 111
article thumbnail

Required reading for marketplace startups: The 20 best essays

Andrew Chen

Anand Iyer (Trusted) again, talks about the evolution from leadgen/search-based marketplaces to full-stack where the platform helps manage: 1) customer UX, 2) supply software tools, 3) retention/frequency, 4) transactional model, 5) trust/safety/risk, 6) pricing mgmt + guidance. How to think about frequency and retention?

Metrics 110
article thumbnail

How to Build a Habit-Forming Enterprise Product

Nir Eyal

For companies building products for enterprise customers, increasing customer retention by just 5 percent increases profits by 25 to 95 percent. User retention is perhaps the most important metric for SaaS providers, who offer products or services that must engage customers regularly to ensure they don’t churn.

SaaS 62