Read on Twitter
Early-stage bottom-up SaaS founders – this thread is for you
Below
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔬" title="Mikroskop" aria-label="Emoji: Mikroskop"> Most important metrics to track
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛠" title="Hammer und Schraubenschlüssel" aria-label="Emoji: Hammer und Schraubenschlüssel"> Tools to track these metrics
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎨" title="Farbpalette" aria-label="Emoji: Farbpalette"> How to best visualize and share these metrics
Below
1/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔬" title="Mikroskop" aria-label="Emoji: Mikroskop"> What metrics should early-stage bottom-up SaaS founders focus on?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✨" title="Funken" aria-label="Emoji: Funken"> Pre-revenue https://abs.twimg.com/emoji/v2/... draggable="false" alt="✨" title="Funken" aria-label="Emoji: Funken">
1. Retention:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> User: % of new users who are still active 3-6 months later
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Logo: % of new companies who are still active 3-6 months later
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> L7/L30: # of days that users are active
1. Retention:
2/ Virality within an organization:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Invite rate: % of new users who sent at least one invite in the first X days
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Invite conversion rate: % of users who receive an invite that sign-up in the next X days
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Virality factor: % of new users who have come from an invite
3/ Top-of-funnel growth:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Traffic: Visits to site/week
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> MoM new user growth: Month over month growth rate in total users
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Activation: % new users who “activate”, whatever that means for your product
4/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund"> Post-revenue:
1. Revenue growth
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> MRR: MoM MRR growth
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> ARR: MoM ARR growth
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> New customers: New customers/week
2. Retention
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Customer: % of new paying customers who are still customers 3-6 months later
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Net Dollar Retention: MRR of each cohort at 12 months
1. Revenue growth
2. Retention
5/ 3. Monetization
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Paid company conversion: % of free companies that convert to paid within X days
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Payback period: Average time to pay back CAC
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Gross margins: Net sales revenue minus the cost of goods sold
6/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧐" title="Gesicht mit Monokel" aria-label="Emoji: Gesicht mit Monokel"> Additional metrics to track and have available:
1. Engagement
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> DAU/MAU
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Key actions per day/week (e.g. tasks created, pics sent)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Average time spent/user/day
1. Engagement
7/ 2. Virality within an organization
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Invite volume: When an invite was sent, median number of invites sent per user
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Velocity of virality: Median days from 1 —> N seats at a company
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Traction: Number of total companies with at least 3 users signed-up
8/ 3. Monetization
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> ARPU: Average revenue per user
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> User conversion: % of free users that convert to paid within X days
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Quick ratio: (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Growth spend efficiency: CAC/LTV
9/ 4. Funnel conversion
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Landing conversion: % visitors click CTA
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> Activation: % visitors who “activate”, whatever that means for your product
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> % visitors complete your sign-up flow
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✔" title="Fettes Häkchen" aria-label="Emoji: Fettes Häkchen"> % visitors signup
10/ https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛠" title="Hammer und Schraubenschlüssel" aria-label="Emoji: Hammer und Schraubenschlüssel"> What tool do founders use to track their metrics AND https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎨" title="Farbpalette" aria-label="Emoji: Farbpalette"> How do they visualize and share these metrics?
1. Google Sheets
https://twitter.com/craigzingerline/status/1312218315423653888?s=20
https://twitter.com/craigzing... href=" https://twitter.com/garrett_wj/status/1312422060845608966?s=20
https://twitter.com/garrett_w... href=" https://twitter.com/lwcassid/status/1312218477629849600">https://twitter.com/lwcassid/... https://twitter.com/JerocelleDGR/status/1315629374691930114?s=20">https://twitter.com/Jerocelle...
1. Google Sheets
https://twitter.com/craigzingerline/status/1312218315423653888?s=20
11/ 2. Profitwell https://twitter.com/jimmymackin/status/1312136225080270848">https://twitter.com/jimmymack...
12/ 3. Google Data Studio https://twitter.com/NoubarTedjirian/status/1312428038521581568">https://twitter.com/NoubarTed...
13/ Other: Mixpanel, Looker, Tableau, Anaplan, Causal, Slack https://twitter.com/JustDilley/status/1312155733308305409?s=20">https://twitter.com/JustDille...
14/ For much more, check out this week& #39;s post https://www.lennyrachitsky.com/p/the-most-important-bottom-up-saas-69d">https://www.lennyrachitsky.com/p/the-mos...
