Atufa Shireen
3 min readApr 23, 2022



The over simplified customer lifecycle for any SaaS based companies include these stages:

Acquisition -> Analysis -> Upsell -> Retain

and customer metrics can be used for tracking these stages in depth such as customer satisfaction.

  • Although not every metric is covered here, which differs with product type and need, these are the common metrics around.
  • Metrics are defined to make decisions, therefore any or all of these metrics are used in multiple stages.

Acquisition is bringing new customers into the business, through various channels. Here are some important metrics:

  1. Cost Per Acquisition

CPA, is used to know how much you’re spending when you acquired new customers with which you can decide which channel is bringing more or less value.

2. click through rates

CTR, can show you how many times your add or searched was clicked in comparison to its views.

2. Analysis

  1. Customer Segmentation

CS, can be used to visually analyse and create categories for them, which can be done on the basis of

  • Demographic :

defines customers based on Age, Gender,Income..

  • Geographic:

defines customers based on country, city, state..

  • Behavioral:

Frequency of actions like view, purchase..

  • Value Based:

Economic value for the groups.

2. Net Promoter Score

NPS. Indeed customer satisfaction is not just about feedback of customers towards products but also their feelings towards the brand or how likely they are to make repeat purchases and calculated using survey forms.

3. Customer Engagement Score:

CES, is used to understand how much your customer likes a particular product or products in a particular category.

Here’s how its calculated

3. Upsell/Cross sell

Upselling is persuading the customer to upgrade their product or buy a more expensive version of it, whereas cross selling is persuading customers to buy more than (in quantity) what they intended, which is done through recommendations, higher versions..

Tracking carts is handy here.

4. Retention

Retaining the acquired customers is more precious than acquiring new customers, especially for SaS businesses, as in pareto principle,

80% of the sales come from 20% of the customers.

Since, acquiring new customers is costly and customer satisfaction leads to new customers through the network.

  1. Customer Lifetime Value
  2. Churn rate
  3. Customer Satisfaction Score
  4. Active Users

To be continued….