Free Preview — Sample from the Analytics Dashboard Setup Kit

Analytics Dashboard Setup — Free Preview

Sample: SaaS Metrics Definitions Guide

Preview Excerpt

This is a free sample from the Analytics Dashboard Setup kit — a complete analytics foundation for early-stage SaaS founders. The full kit includes 8 deliverables covering everything you need to go from zero visibility to a production-grade analytics stack.

Below is an excerpt from the SaaS Metrics Definitions Guide, one of the eight resources included. Each metric includes its formula, measurement approach, and industry benchmarks so you can start tracking what matters from day one.

✓PostHog setup & configuration guide
✓Revenue dashboard templates
✓Stripe analytics integration
✓Funnel tracking blueprints
✓SaaS metrics definitions (preview below)
✓Cohort analysis worksheets
✓Alert & threshold playbook
✓Investor-ready reporting template

SaaS Metrics Definitions Guide

Six foundational metrics every SaaS founder must track from launch.

MRR

Monthly Recurring Revenue

Measured: Monthly
What It Measures The predictable, recurring revenue your business earns each month. MRR normalizes annual, quarterly, and monthly plans into a single monthly figure for a clear view of growth trajectory.
Why It Matters MRR is the heartbeat of any subscription business. Investors use it as the primary lens for evaluating growth. Tracking MRR movements (new, expansion, contraction, churned) reveals the story behind the number.
Formula
MRR = SUM( monthly_plan_price × active_subscribers ) + ( annual_plan_price / 12 × annual_subscribers )
Components to Track New MRR — first-time subscribers. Expansion MRR — upgrades and add-ons. Contraction MRR — downgrades. Churned MRR — cancellations.
Churn

Churn Rate

Measured: Monthly
What It Measures The percentage of customers (or revenue) lost during a given period. Customer churn counts lost accounts; revenue churn measures lost dollars — both tell a different part of the retention story.
Target Benchmarks Good: < 5% monthly Caution: 5–10% monthly
B2B SaaS best-in-class annual logo churn is under 10%. SMB-focused monthly churn of 3–5% is typical at early stage.
Formulas
Customer Churn Rate = ( customers_lost / customers_at_start ) × 100
Revenue Churn Rate = ( MRR_lost / MRR_at_start ) × 100
ACT

Activation Rate

Measured: Weekly / Cohort
Definition The percentage of new sign-ups who reach a predefined "aha moment" within a set time window. This milestone varies by product — creating a first project, inviting a teammate, or completing onboarding.
Industry Benchmarks Good: 25–40% Great: 40–60%+
Top PLG companies achieve 50%+ activation. Benchmarks vary by product complexity and activation event definition.
How to Measure 1. Define your activation event (earliest action correlated with retention). 2. Set a time window (e.g., 7 days). 3. Calculate: (users reaching milestone / total new sign-ups) × 100. 4. Segment by channel and plan type.
DAU/MAU

DAU / WAU / MAU

Measured: Daily
Definitions DAU — unique users performing a meaningful action in a day.
WAU — unique users active in a rolling 7-day window.
MAU — unique users active in a rolling 28/30-day window.
"Active" must be a product-specific action, not just a login.
Stickiness Ratio DAU/MAU Ratio measures what fraction of monthly users engage daily. Good: 20%+ DAU/MAU Great: 40%+ (collab tools)
Ratio Calculations
Stickiness (DAU/MAU) = ( DAU / MAU ) × 100
Weekly Engagement = ( DAU / WAU ) × 100
NRR

Net Revenue Retention

Measured: Monthly / Quarterly
Why It Matters NRR answers: "If I stopped acquiring new customers today, would my revenue grow or shrink?" Above 100% means existing customers generate more revenue over time through expansions, even after churn. It is the single most important metric for demonstrating efficient growth.
Benchmark Target: >100% Best-in-class: 120–140%
Public SaaS companies with NRR above 130% command the highest valuation multiples. Early-stage companies should aim for at least 100%.
Formula
NRR = ( ( MRR_start + expansion - contraction - churned ) / MRR_start ) × 100
ARPU

Average Revenue Per User

Measured: Monthly
What It Measures Average revenue generated per user (or account) in a given period. ARPU connects pricing strategy to realized revenue and helps evaluate whether price changes, packaging shifts, and upsells are working.
Segmentation Advice Never rely on a blended ARPU. Segment by: plan tier (free vs. paid vs. enterprise), acquisition channel, geography, and customer age. Segmented ARPU reveals which cohorts drive the most value.
Formula
ARPU = total_revenue_in_period / total_active_users_in_period
Pro Tip Track ARPA (Average Revenue Per Account) alongside ARPU if your product supports multiple users per account. ARPA gives a clearer picture of account-level monetization for B2B pricing decisions.
This preview contains 1 of 8 deliverables from the Analytics Dashboard Setup kit. The full package includes PostHog configuration, dashboard templates, Stripe integration guides, cohort analysis tools, and more.

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