--- title: If you're a SaaS-based business, only 3 things matter description: David Skok of Matrix Partners has published the ultimate guide to SaaS Metrics - and to measuring and improving what matters image: https://www.inflexion-point.com/hs-fs/file-15735041-png/images/impact_of_faster_growth.png --- This is a search field with an autosuggest feature attached. - There are no suggestions because the search field is empty. # If you're a SaaS-based business, only 3 things matter ![Bob Apollo](https://app.hubspot.com/settings/avatar/78fa41976d534cacbb0e22e151bc6816) Post by [Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo) January 18, 2013 ![If you're a SaaS-based business, only 3 things matter](https://www.inflexion-point.com/hs-fs/file-15735041-png/images/impact_of_faster_growth.png) If - like many of the companies I work with - you have a SaaS-based business, then the choice of metrics you use to measure the success of your business model is absolutely critical. I've quoted David Skok of Matrix Partners before and if you're not already a subscriber to his [for Entrepreneurs](http://www.forentrepreneurs.com/) blog, then I strongly recommend that you sign up today. I want to commend his latest article to you. ![Impact of faster growth](https://www.inflexion-point.com/hs-fs/file-15735041-png/images/impact_of_faster_growth.png?width=160&height=204&name=impact_of_faster_growth.png)In "[SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters](http://www.forentrepreneurs.com/saas-metrics-2/)", David quotes Lord Kelvin's remark that *if you cannot measure something, you cannot improve it* - a thought that really appeals to the engineer in me. Clear processes and metrics are even more important in the SaaS world than they are in conventional software businesses. The effect of what might seem like relatively small adjustments at key points can have a dramatic compounding effect on financial viability. At the end of the day, and as David points out in the article, it really all boils down to just three factors: 1. Your success in acquiring new customers 2. Your success in retaining existing customers 3. Your success in realising the full potential of your customers If this all seems to be blindingly obvious, of course it is. But the devil is in the detail of what and how you choose to measure and how you interpret and act upon the results. David's article deals with this in a uniquely comprehensive way. I commend it to you. The article includes a truly comprehensive downloadable spreadsheet that captures all the key metrics and puts them into actionable context. Readers have remarked that it could have saved them years of experience and hours/days of work! One final point: David highlights the lag between recognising the need for fresh investment and that investment having an impact on revenue - he characterises it as taking between 3-4 quarters to have real impact, and this reflects much of our own experience. But of course, you first need to identify the areas where investment will make a real difference. If you're in a SaaS business, please [read David's article in full today](http://www.forentrepreneurs.com/saas-metrics-2/). And if your metrics don't measure up, please do something about it sooner rather than later. ###### Tags: [B2B Marketing, ](https://www.inflexion-point.com/blog/topic/b2b-marketing) [Thought Leaders, ](https://www.inflexion-point.com/blog/topic/thought-leaders) [Complex Sales](https://www.inflexion-point.com/blog/topic/complex-sales) ![Bob Apollo](https://app.hubspot.com/settings/avatar/78fa41976d534cacbb0e22e151bc6816) Post by [Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo) January 18, 2013 Bob Apollo is a Fellow of the Institute of Sales Professionals, a regular contributor to the International Journal of Sales Transformation and Top Sales World Magazine, and the driving force behind Inflexion-Point Strategy Partners, the leading proponents of outcome-centric selling. Following a successful corporate career spanning start-ups, scale-ups and market leaders, Bob now works as a strategic advisor, mentor, trainer and coach to ambitious B2B sales organisations - teaching them how to differentiate themselves through their provably superior approach to achieving their customer's desired outcomes. [Follow me on my website](https://www.inflexion-point.com) [Follow me on LinkedIn ](https://uk.linkedin.com/in/bobapollo) [Follow me on Twitter ](https://twitter.com/bobapollo) ### Comments ###### Related Articles ### [It’s Best Not to Confuse Activity with Progress](https://www.inflexion-point.com/Blog/bid/54544/It-s-Best-Not-to-Confuse-Activity-with-Progress) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Jan 13, 2011** Over the past few weeks, I’ve been exposed to a number of situations where companies - or the managers that represent them - ... ### [The Application Development Landscape - 2012 and Beyond](https://www.inflexion-point.com/Blog/bid/79231/The-Application-Development-Landscape-2012-and-Beyond) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Dec 16, 2011** Facing a rapidly evolving technology landscape, any organisation involved in commercial software development is being forced ... ### [Evangelising your vision of a better future...](https://www.inflexion-point.com/Blog/bid/31157/Evangelising-your-vision-of-a-better-future) Posted by **[Bob Apollo](https://www.inflexion-point.com/blog/author/bob-apollo),** **Mar 05, 2010** [![Outcome-Centric Selling Academy offer](https://www.inflexion-point.com/hubfs/OCSA%20CTA%20300x300.png) ](https://inflexion-point.thinkific.com/) Subscribe Categories - [Complex Sales (375)](https://www.inflexion-point.com/blog/topic/complex-sales) - [B2B Marketing (200)](https://www.inflexion-point.com/blog/topic/b2b-marketing) - [B2B Buying Process (122)](https://www.inflexion-point.com/blog/topic/b2b-buying-process) - [Value Selling System (114)](https://www.inflexion-point.com/blog/topic/value-selling-system) - [Outcome-Centric Selling (100)](https://www.inflexion-point.com/blog/topic/outcome-centric-selling) - [Scalable Systems (89)](https://www.inflexion-point.com/blog/topic/scalable-systems) - [Thought Leaders (75)](https://www.inflexion-point.com/blog/topic/thought-leaders) - [Revenue Management (59)](https://www.inflexion-point.com/blog/topic/revenue-management) - [Opportunity Qualification (36)](https://www.inflexion-point.com/blog/topic/opportunity-qualification) - [Intelligent Targeting (35)](https://www.inflexion-point.com/blog/topic/intelligent-targeting) - [CSO Insights (32)](https://www.inflexion-point.com/blog/topic/cso-insights) - [Sales Enablement (31)](https://www.inflexion-point.com/blog/topic/sales-enablement) - [Selling in the Breakthrough Zone (31)](https://www.inflexion-point.com/blog/topic/selling-in-the-breakthrough-zone) - [Sales + Marketing Alignment (30)](https://www.inflexion-point.com/blog/topic/sales-marketing-alignment) - [CRM (24)](https://www.inflexion-point.com/blog/topic/crm)