In an ideal world, it would be easy to correlate your Marketplace apps and integrations back to your core business metrics and KPIs.
Some of the common metrics that SaaS business track are:
- Annual Recurring Revenue (ARR)
- Monthly Recurring Revenue (MRR)
- MRR Growth Rate
- Net Revenue Retention (NRR)
- Customer Lifetime Value (CLV)
- Customer Acquisition Cost (CAC)
- Customer Churn
Your apps and integrations with Partners can, and should, be helping to improve these metrics, but it can be challenging and labor intensive to build all of the analytics required to show direct correlations.
In lieu of building out the above, there are some lighter-weight metrics that are easier to source, that can be used as proxy metrics.
Leading Metrics for apps and integrations
These are metrics you can track immediately, and can help show what integrations that customers are finding valuable.
- Installs - How many times has an integration been installed / how many customers are actively using it?
- Monthly Active Users (MAU) - How many unique users does the integration have every month?
- DAU / MAU Ratio - Mapping the ratio of Daily Active Users to Monthly Active Users can be an interesting engagement metric to track. In general more engagement is a positive.
Lagging Metrics for apps and integrations
These metrics may be harder to source, or may take some time to be able to see trends.
- Customer Satisfaction (CSAT) - Are customers satisfied with these integrations? You can look at this metric from 2 angles. Firstly, you can have customers rate the app itself. Secondly, you can measure CSAT at the customer level and try and correlate that back to the apps and integrations they use.
- Customer Churn - Do customers who use certain integrations churn less?
- Revenue growth - Do customers who use certain integrations grow faster?
- License consumption - Do customers who use certain integrations utilize your products more than those who do not?
Integration Quality Metrics
Quality as a concept us unique and specific to every individual platform and ecosystem. You should spend some time trying to work out what that means for your platform, but here are some commonly used metrics:
- Customer Reviews / Ratings - Can be challenging to source but provide a clear signal on where customers see value.
- Uninstall / Install ratio - In general this should be low. If higher than expected, make sure the app is being marketed and positioned correctly.
- Update Frequency - Are partners investing in the integration, and keeping it refreshed with bug fixes, new features and design improvements?
"Measurement is fabulous. Unless you're busy measuring what's easy to measure as opposed to what's important." - Seth Godin
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