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Product Design for SaaS Startups: Best Practices and Examples

ReadWriteStart

Customer churn rate: Customer churn rate is the percentage of customers who cancel their monthly SaaS subscriptions. A high customer churn rate can indicate problems with the product or that the company is not effectively marketing its product to potential customers. Design your architecture.

Design 105
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Focus on awareness and metrics are keys to success

Up and Running

If a Software-as-a-Service (SAAS) play, you will need to pay close attention to churn rates (the rate of customer attrition), customer acquisition costs (the average cost to acquire a customer) and the lifetime value (LTV) of your customers.

Metrics 68
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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. This is a guiding architectural principle for best-of-breed SaaS companies.