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What are the key KPI metrics for SaaS businesses?

An example of an AI chatbot conversation about KPI metrics for SaaS businesses.

😀
You

What are the key KPI metrics for SaaS businesses?

MagicBuddy
MagicBuddy

Key KPI metrics for SaaS include MRR, ARR, churn rate, CAC, and LTV. Would you like to know more about any specific metric?

😀
You

Can you explain what MRR is?

MagicBuddy
MagicBuddy

MRR stands for Monthly Recurring Revenue. It's the total predictable revenue generated from subscriptions each month.

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You

How do you calculate churn rate?

MagicBuddy
MagicBuddy

Churn rate is calculated by dividing the number of customers lost during a period by the total number of customers at the start of that period.

😀
You

What is a good LTV for a SaaS company?

MagicBuddy
MagicBuddy

A good LTV varies, but generally, a ratio of 3:1 LTV to CAC is considered healthy for SaaS companies.

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