2012 annual saas metrics survey results
DESCRIPTION
SaaS executives are shifting business focus, our survey report reveals great dissatisfaction with common business metrics; customer-centric measurements sets the new standard.TRANSCRIPT
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2nd Annual SaaS Metrics Survey
September 2012
Powering the Customer Era
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Table of Contents
1. Methodology …………………………………… 3
2. Analysis & Insights …………………………. 6
3. Survey Results ...................................... 11
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Methodology
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About Totango
Totango creates an Active and Engaged online user-base, resulting in
better Monetization and less churn
Totango manages over 2.1 million accounts for its customers
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Research Methodology
Totango surveyed 134 executives at SaaS companies about the key performance indicators used to run their businesses. The same survey was also conducted in 2011 giving Totango unique insights into SaaS trends.
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Analysis & Insights
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2011 2012
61%
68%
68% of SaaS Executives are unhappy with the current metrics and methods available to measure SaaS business progress, which is up from 61% from last year.
1
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57%
57% of SaaS Executives are planning to implement new Key Performance Indicators to better measure and manage their business in the next twelve months.
2
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There is a shift towards customer centric measurements, designed to report on the success of existing customers: 5 out of the top 6 new Key Performance Indicators are customer metrics.
3
NPS
Upsell
Campaign performance
CLV
Churn
Product Usage Analysis
5%
8%
9%
13%
16%
39%
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Number of new trial signups or free accounts
Conversion rates (free to paying)
Website unique visitors
68%
71%
74%
56%
59%
54%
2011 2012
SaaS companies are relying more and more on data and analytics to run their businesses and there is an increase in the use of metrics across the board.
4
+20%
+12%
+12%
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Survey Data
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Website unique visitors
Conversion rates (free to paying)
Product usage statistics
Number of new trial signups or free accounts
Churn rates
Revenues per user
Customer lifetime value
Account activation rate
Social media mentions
Upgrade and downgrade
Net Promoter Score (NPS)
74%
71%
69%
68%
63%
49%
48%
44%
31%
30%
18%
54%
59%
56%
56%
44%
31%
31%
21%
2011 2012
Question 1: Which metrics do you track (check all that apply)?
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Social media
CAC
Word of mouth
MRR
NPS
Upsell
Campaign performance
CLV
Churn
Product Usage Analysis
1%
1%
3%
4%
5%
8%
9%
13%
16%
39%
Question 2: Which metrics do you plan to track in the future?
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Question 3: What aspects of churn do you measure (all that apply)?
Annual retention/churn in % of the number of customers
Monthly steady-state churn
Annual retention/churn in % of revenues
Churn occurring in the first 90 days of a customer's life
50%
46%
36%
22%
Note: Even though a majority of SaaS companies rely on recurring revenues, less than half measure churn (no wonder CEOs are unhappy with their metrics).
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Question 4: At what frequency are you reviewing these metrics?
Daily (or more)
Weekly
Monthly
Quarterly - once a quarter
Never
Varies
28%
31%
13%
1%
5%
21%
36%
36%
9%
4%
10%
5%
2011 2012
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Question 5: How much are you growing revenues per user annually?
N/A 0-20% 21-40% 41-60% 61-80% Over 100%
49%
26%
11%8%
5%2%
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Question 6: How happy are you with the state of your metrics?
Very pleased
Good enough
Not satisfied and invest on improving it
Not satisfied and learned to live with it
17%
14%
32%
37%
15%
25%
34%
27%
2011 2012
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7%
22%
49%
22%
Scaling (first couple of years in revenue)
Mature
No revenue yet (we’re just starting)
Young (first year of revenue)
Question 7: What is the stage of your business?
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51%
23%
20%
6%Subscription with free trial
Enterprise sales
Freemium
Other
Question 8: What is your business model?
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Respondents by Title
Sales
Marketing
Customer Success
Product Management
CEO
Executive
R&D
Operations / Finance
IT
23%
22%
22%
17%
7%
5%
2%
2%
2%
Question 8: What is your title?
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