Saas Reporting Analytics - Guide to New Startup Business Building
Tags: startup
Published: 2023-03-21 16:22:49


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**In today’s digital age, businesses generate vast amounts of data from multiple sources, including customer interactions, sales transactions, marketing campaigns, and website visits.** 

However, more than data is needed to drive business success. It would be best to have robust reporting and analytics tools to make sense of the data and turn it into actionable insights. For instance, Churnfree has recently gained popularity as a SaaS reporting analytics tool. 
Churnfree provides businesses with real-time insights into their data, enabling them to make informed decisions, improve performance, and drive growth.

This article will explore the key best practices for implementing SaaS reporting analytics and how they can help you enhance your business intelligence.

SaaS Reporting Analytics and Growth Metrics You Should know
The best approach to prepare the best customer retention strategy is by knowing the basic knowledge of SaaS reporting analytics metrics and how they can help you enhance your business intelligence.

## 1. Churn Rate
The churn rate is the percentage of customers who have stopped using a product or service over a given period. In SaaS, it is essential to track churn rate as it provides insights into customer satisfaction levels. To calculate the churn rate, divide the number of customers who have stopped using the product by the total number of customers.

Determine the number of customers who have canceled or not renewed their subscription within a given period. This can be a monthly or quarterly period, depending on the company’s preference.

### For example, 
if a company had 1,000 customers at the beginning of the month and 50 of them canceled their subscriptions during the month, the churn rate for that month would be 5%.

SaaS companies use SaaS reporting tool to track their churn rate regularly and identify trends to take steps to improve customer retention. A high churn rate can indicate that customers are unsatisfied with the service, and the company may need to improve its product or customer support.

## 2. Customer Lifetime Value (CLTV)
Customer Lifetime Value (CLTV) is the total value that a customer brings to a business over their lifetime. CLTV is a critical SaaS reporting analytics as it helps businesses understand each customer’s profitability. Calculating Customer Lifetime Value (CLTV) is essential for SaaS companies to understand the overall value a customer brings to their business over time. To calculate CLTV, multiply the average revenue generated per customer by the average customer lifespan. Here are the steps to calculate CLTV:

Determine the average revenue per customer per month.

This can be calculated by dividing the total revenue earned in a given time period by the total number of customers during that same time period.

### For example, if a company earned $100,000 in revenue in a month and had 1,000 customers during that same month, the average revenue per customer per month would be $100.

Write full article on: [SaaS reporting analytics](https://churnfree.com/blog/saas-reporting-analytics/)