4 best SaaS analytics tools to help you build a better business

Simple SaaS analytics tools like Google Analytics are great for surface level findings, but to really dig deep into SaaS analytics you'll need a better tool. We dig into the options.

There are a lot of moving parts when it comes to ensuring your subscription business stays healthy. And SaaS analytics play a crucial part. Tracking certain analytics will help keep you informed and alerted of your company’s health.

There are a lot of tools out there, but they’re not one-size-fits-all. Find out why SaaS analytics are important, which to track, and which tools are best for your subscription business.

What is SaaS analytics?

SaaS analytics collects and analyzes data that is specific to the SaaS subscription industry. SaaS analytics uncover things like churn and track metrics like monthly recurring revenue (MRR), lifetime value (LTV), and churn rate.

How SaaS analytics translates to growth

It's no secret that SaaS businesses are constantly in an optimization loop. Companies often miss the value of internal data sources as growth drivers. Here are four key data points that you can leverage from your data analytics.

Uncover churn

SaaS analytics tools help you uncover where your worst churn may be hiding in real-time. Once you know the reason behind your churn, you can stop it at the source and even automate certain processes to increase customer retention.

Segment customers

Segmenting customers by industry, MRR, LTV, or even churn rates can help you better understand user behavior and optimize customer targeting and user experience.

Highlight the most profitable customers

Your most profitable customers will have the highest LTV. Knowledge of these customers will help you with other and/or future customers and build brand messaging that attracts new customers with a similar profile.

Track campaigns

Tracking your email marketing campaigns is essential for understanding their effectiveness and making informed decisions on their future.

The 4 best SaaS analytics tools

The tech space is inundated with tools, so it can be overwhelming. Here’s a breakdown of the top four.

1. ProfitWell Metrics

ProfitWell Metrics provides an overview of everything happening in your subscription business. Trusted by over 10,000 SaaS companies.

Pros:

100% accuracy in financial metrics.
Offers optional paid add-ons to reduce churn.

Cons:

Limited customization in methodology for metrics.

Price:

Free

2. Google Analytics

Pros:

Customizable and easy to use.

Cons:

Some say it’s not actionable and lacks robustness.

Price:

Basic is free, Analytics 360 is priced case-by-case.

3. Baremetrics

Pros:

One-click integration with billing systems and offers cancellation insights.

Cons:

Accuracy can be unreliable, especially for small companies.

Price:

14-day free trial, pricing based on company's MRR.

4. ChartMogul

Pros:

Geographical heat map of revenue and customers. Good customization.

Cons:

Currency fluctuations are a noted issue.

Price:

Depends on plan - Launch is $0 for MRR under $100; Scale is $100/mo, Volume is custom pricing.

5 SaaS metrics & KPIs to track

Churn Rate

Vital to understand business health, this is the percentage of customers that leave your service over a period.

ARR & MRR

These metrics help in planning for both short-term and long-term revenue.

Customer LTV

Total dollar amount expected from a customer over their account life.

ARPU

Helps identify trends and can shift your business’s profitability trajectory.

CAC

Total cost of sales and marketing campaigns to acquire a customer.

How these SaaS companies used analytics to build a better business

Wootric's financial visualization

Jessica Pfeifer, Chief Customer Officer and Co-Founder, emphasizes the importance of feedback in running a business. ProfitWell Metrics helped streamline her reporting process.

UrbanSitter’s pricing optimization journey

Lynn Perkins, CEO of UrbanSitter, states that analytics drastically improved their pricing strategy within weeks, helping increase conversions and improve their analytical process.

SaaS analytics FAQ

What is SaaS analysis?

The process of collecting, cleaning, organizing, and visualizing SaaS subscription data for business insights.

Which is the best tool for SaaS analytics?

It depends on your business needs. ProfitWell Metrics, Google Analytics, Baremetrics, and ChartMogul are excellent options.

When should I start using SaaS analytics?

It’s never too late or too early to start tracking your SaaS data.