When analyzing your SaaS data, there's no shortage of KPIs to track. With so much data to monitor, it can be easy to get overwhelmed and drowned in numbers.
So, how do you know which KPIs are the most important for your business? And, more importantly, how do you use that data to improve your business?
Today, we'll share tips on analyzing SaaS data effectively and making informed decisions based on your findings.
Let’s dive in.
Table of contents
- Understanding Your Data Sources
- 6 Practical Methods for Examining SaaS Data
- How to Identify Valuable Trends in Your Data
- The Future of SaaS Analytics
Understanding Your Data Sources
There's no such thing as "too much data."
The key is understanding where your data comes from and how to use it to improve your business.
Think about all of the different places you collect data from.
- Your website
- Social media
- Email campaigns
- Sales data
- Customer service interactions
... the list goes on.
Taking a step back and understanding how these different sources fit together is essential.
For example, let's say you're looking at your website traffic data.
You might see a spike in traffic from a particular source, but you're still determining what to make of it.
If you look at your email campaign data, the spike coincided with a new campaign you launched. This gives you valuable insight into which campaigns are working and which ones aren't.
The bottom line is that you can only make informed decisions by understanding your data sources.
Let's explore a few of the most common data sources for Saas companies:
1. Your product
Your product is the most important data source for your business. After all, it's where your customers interact with your brand daily.
This data can be used to understand customer behavior and product engagement. You can use it to find out which features are being used the most (and which ones are being ignored), how customers are using your product, and where they're getting stuck.
For instance, let's say you're offering a free trial period. You can use data from your product to track how many people are signing up, how long they're using the trial, and what features they're engaging with.
You can also use this data to identify patterns and trends. For example, you might see that a specific group of users is more likely to convert to paying customers. This gives you valuable insight into your ideal customers and how to attract more of them.
2. Your website
Your website is another critical data source. It's where most potential customers will first encounter your brand, so it's essential to ensure it delivers the right message.
You can use website data to track everything from web traffic to conversion rates. You can use it to see which channels drive the most traffic, which pages are being visited the most, and where people are dropping off your site.
This data is valuable for understanding how well your website is performing and identifying areas that need improvement.
3. Social media
Social media is a powerful marketing tool and a great way to gather data about your customers and their behavior.
You can track brand mentions, post engagement, and click-through rates using social media data. This data can help you understand how well your social media campaigns are performing and identify improvement areas.
You can also use social media data to track your competitor's performance. This gives you valuable insight into what's working well for them and what you can do to beat them.
4. Customer support
Your customer support data is a goldmine of information about your customers and their behavior.
You can use this data to track support requests, customer satisfaction levels, and first-time resolution rates. This data can also be used to identify customer churn risk and track the effectiveness of your support team
This gives you valuable insight into why customers are leaving and how you can keep them around.
For instance, let's say you see a spike in customer churn. You can use customer support data to track why customers are leaving. This might give you valuable insight into a problem with your product, or it might help you identify a group of customers at risk of leaving.
5. Sales data
Your sales data is another valuable source of information about your customers.
You can use this data to track customer acquisition, churn, and lifetime value (LTV).
You can also use it to segment your customers by product usage, plan type, or other criteria.
This data can be beneficial in understanding which products or services are selling well and which ones need improvement.
6 Practical Methods for Examining SaaS Data
You can use a few different methods to examine your SaaS data.
1. Data visualization
Data visualization is a great way to overview your data quickly.
Many data visualization tools are available, including tableau and Google Data Studio.
Consider using a simple bar or line chart, depending on your needs. Or, you could use a more complex visualization like a heatmap.
For instance, let's say you want to track customer churn.
You could use a simple line chart to track the number of customers who cancel their monthly subscriptions.
You could also use a heatmap to track customer churn by region.
This would give you a better idea of which areas are causing the most customers to cancel their subscriptions.
2. Data analysis
Data analysis is a more in-depth way of examining your data.
There are several different data analysis techniques, including regression analysis, time series analysis, and cohort analysis.
- Regression analysis is a statistical technique used to examine the relationships between different variables.
- Time series analysis is a statistical technique that can be used to examine changes in data over time.
- Cohort analysis is a statistical technique that can group data points.
You can use these techniques to examine your data in more detail and identify trends.
3. A/B testing
A/B testing is a powerful way to test different hypotheses about your data.
With A/B testing, you can create two different versions of an element and track which performs better.
This is a great way to test different hypotheses about your data and determine the most effective.
4. Customer surveys
Customer surveys are a great way to collect qualitative data about your customers.
This data can be used to understand customer behavior, identify customer needs and wants, and track customer satisfaction levels.
Customer surveys can be conducted online, over the phone, or in person.
If you don't want to use surveys, another option is to interview your customers.
Interviews are a great way to collect detailed information about your customers' experiences and needs.
You can conduct interviews online, over the phone, or in person.
6. User testing
User testing is a great way to collect data about how your customers use your product. The tests can be conducted online, over the phone, or in person.
For instance, you can ask your customers to use your product for a specific task and then ask about their experience.
Ask your customers to complete a task without using your product to see how they would fare.
Ultimately, user testing can help you understand how your customer base interacts with your product and identify areas for improvement.
How to Identify Valuable Trends in Your Data
Once you've collected data from different sources, it's time to analyze it.
One way to do this is to look for trends in your data.
For instance, you might notice that specific customer segments are more likely to churn than others.
Or you may notice that customer satisfaction levels drop after specific product changes are made.
Spotting these trends can help you understand what's working well and needs improvement.
Creating actionable goals
Once you've analyzed your data and identified trends, it's time to start setting goals.
Goals should be specific, measurable, achievable, relevant, and time-bound.
For instance, a goal might be to reduce customer churn by 10% over the next six months. Maybe you want to increase customer satisfaction by 5% over the next year.
Setting goals will help you focus your efforts and measure your progress over time.
The key is to use data to drive your decisions. By analyzing SaaS data, you can identify areas of opportunity and get a better understanding of what's working well (and what isn't).
This, in turn, will help you create actionable goals that will improve your business.
For instance, if you see that customers are churning at a high rate, you might set a goal to reduce customer churn by 10% over the next six months.
If you see low satisfaction in a particular area, you might start by investigating the root cause. Then, you can set a goal to improve happiness.
Remember, data is your friend. It can help you make informed decisions that will improve your business. So don't be afraid to dive in and analyze your SaaS data today.
The Future of SaaS Analytics
SaaS analytics is constantly evolving.
As more and more businesses move to the cloud, the need for data-driven insights will only continue to grow.
To stay ahead of the curve, you must make data-driven decision-making a part of your culture.
You must also invest in tools and technologies to collect, analyze, and act on data.
Consider partnering with experienced data analysts who can help you make sense of your data and turn it into actionable insights.
By following these steps, you'll be well on your way to making data-driven decisions that can help your business thrive.