If you are a SaaS owner, you probably know that analytics is the backbone of your SaaS. The problem is that most SaaS owners don’t know how to use analytics to grow their SaaS.
There are a lot of different analytics out there that you can track. While it’s tempting to track all of them, tracking too many metrics can actually hurt your SaaS. You want to track only the metrics that are important to your SaaS.
In this article, I am going to show you how to improve analytics in your SaaS. With these tips, you will know what metrics to track and how to use them to grow your SaaS.
1. Define your Key Performance Indicators (KPIs)
KPIs are a set of metrics that are used to measure the performance of your SaaS. These metrics are specific to your business and should be used to track progress towards your goals.
KPIs can be used to measure a wide variety of things, such as your revenue, customer acquisition, customer retention, and more. It’s important to define your KPIs early on so that you can start tracking them from the beginning.
2. Get the right tools for the job
The best way to get the most out of your data is to collect it and then analyze it using the right tools. There are a lot of different analytics tools out there, and it can be difficult to know which one is right for your business.
Some of the most popular analytics tools for SaaS companies include Google Analytics, Mixpanel, and Amplitude. These tools can help you track things like customer behavior, churn, and more.
It’s also a good idea to use a data visualization tool, like Tableau or Looker, to help you make sense of all of your data. These tools can help you create easy-to-understand charts and graphs that can help you identify trends and patterns in your data.
3. Set up your SaaS analytics tools properly
One of the most common pitfalls when it comes to SaaS analytics is not setting up your tools properly.
It’s easy to get started and just throw a tracking code onto your website or integrate your app with an analytics tool. But if you don’t configure your tools correctly, you’ll end up with a lot of data that’s not very useful.
For example, setting up goals and funnels in Google Analytics can help you track the customer journey on your website.
In your app, you can use tools like Mixpanel or Amplitude to set up event tracking and user segmentation to get a better understanding of how customers are using your product.
4. Make data accessible to everyone
The days when only the C-suite had access to the most important metrics are long gone. Today, the most successful companies are those that democratize their data. That means making data accessible to everyone in the company.
You can do this by creating a centralized data hub where people can find all the information they need. You can also use tools like dashboards and reports to make it easy for people to see the most important metrics.
When people have access to data, they can make better decisions. They can also see how their work contributes to the company’s success, which can be very motivating.
5. Train your team to use the tools
The more people on your team who can understand and use the tools, the better. This will help you get more out of your analytics and improve your decision-making processes.
Make sure everyone on your team is trained to use the analytics tools you have in place. This will help you get more out of your data and improve your decision-making processes.
6. Create a data-driven culture
The key to success with analytics is to create a data-driven culture within your SaaS company. This means that everyone in your organization should be comfortable using data to make decisions.
This starts with hiring the right people. Look for candidates who are comfortable with data and who have a track record of using data to drive business results. Once you’ve hired the right people, make sure to provide them with the tools and training they need to be successful.
Finally, make sure that you’re using data to drive your own decision-making. If you’re not comfortable using data to make decisions, it’s going to be hard to get your team on board.
7. Set up an analytics roadmap
The best way to get started with SaaS analytics is to create a roadmap that outlines the key metrics you want to track and why.
Your roadmap should be a living document that gets updated as you learn more about your business and your customers. It should also include milestones that you want to hit, such as reaching a certain number of users or hitting a specific revenue goal.
By setting up an analytics roadmap, you can ensure that your team is all on the same page and working towards the same goals. You can also make sure that you’re tracking the right metrics and not getting bogged down in data that doesn’t matter.
8. Create a data dictionary
Once you’ve selected the data you want to analyze, it’s time to create a data dictionary. This is a document that explains each of your data sources, metrics, and dimensions.
Data dictionaries are helpful for new team members who need to get up to speed quickly, as well as for anyone who needs to reference the data. By creating a data dictionary, you’ll ensure that everyone on your team is speaking the same language.
Your data dictionary should include the following:
• Data source: Where the data comes from
• Metric: The measurement you want to analyze (e.g., monthly recurring revenue, customer acquisition cost)
• Dimension: A characteristic of your data that can be measured (e.g., time, channel, country)
• Description: A brief explanation of the metric or dimension
• Example: A real-world example of the metric or dimension
• Type: Whether the data is a metric or a dimension
• Calculations: How the metric is calculated, including any formulas or algorithms
9. Use a data warehouse
Data warehouses are a way to store your data in a more organized and efficient manner. They allow you to store all of your data in one place, and they also make it easier to access and analyze.
Data warehouses can be a great tool for SaaS companies that are looking to improve their analytics. They can help you to store and organize your data, and they can also make it easier to access and analyze.
In addition, data warehouses can also help you to improve the accuracy of your data. When you store your data in a data warehouse, you can be more confident that it is accurate and up-to-date.
10. Use a dashboard
There are so many different metrics and KPIs you can track with your SaaS. It can be easy to get overwhelmed.
One way to keep all of your data organized and to make it easier to understand is to use a dashboard.
A dashboard will allow you to see all of your most important metrics and KPIs in one place. This will make it easier to see how your SaaS is performing and to identify any areas that need improvement.
There are many different dashboard tools you can use, so be sure to find one that is right for your SaaS.
11. Do not overdo it
It is important to measure the right things and not to overdo it. The more metrics you have, the harder it is to analyze and interpret the results. That is why it is important to choose just a few key metrics that are most important to your business.
If you are not sure which metrics are most important, you can always start with the most common ones, such as customer lifetime value, customer acquisition cost, and churn rate. These metrics will give you a good overview of how your business is doing and will help you identify any potential problems.
12. Use your customers’ data
Your customers’ data can be a goldmine for improving your SaaS analytics. By analyzing the data you collect from your customers, you can identify patterns, trends, and insights that can help you make better decisions.
For example, you can use your customers’ data to identify which features of your software are most popular, which features are being underutilized, and which features need to be improved.
You can also use your customers’ data to identify which customer segments are most profitable, which segments are at risk of churning, and which segments you should focus on acquiring more of.
By using your customers’ data to improve your SaaS analytics, you can make better decisions that lead to increased customer satisfaction, higher retention rates, and more revenue for your business.
13. Make decisions
And, finally, the most important thing you can do with your analytics is to use them to make decisions.
Don’t just collect data for the sake of it. Instead, use the data you collect to inform your strategy and make decisions about how to grow your SaaS business.
For example, if you notice that a particular feature of your product is not being used very much, you can use that data to inform your product development roadmap. Or, if you see that your customer acquisition costs are rising, you can use that data to inform your marketing strategy.
The possibilities are endless, but the key is to make sure that you are using your data to drive action. If you’re not, you’re just wasting your time.
Conclusion
The number of SaaS companies is growing constantly, and with it, the competition. It’s not enough to have a good product – you need to have a product that’s better than the others in order to stand out. This is why it’s important to keep an eye on your product’s analytics and make improvements where necessary.
We hope these tips will help you to improve your product, and in turn, improve your product’s analytics.
Susan Chisnall