Optimizing the Customer Lifecycle for Your SaaS Startup
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You have launched your own SaaS startup and the business was going great for you.
However, recently you are in a phase where either your churn rate is increasing or the revenue from subscription business is stagnant. The best way to come out of this zone is by optimizing the customer lifecycle with your SaaS application. Gridle is one such application that delivers value through a subscription-based model. While most people might suggest spending more on SaaS marketing, it is better to ask these questions first:

  • What is your website visitor to signup ratio?
  • What is your trail to paid conversion rate?
  • What does the churn look like?

After answering these questions, you will realize that it is better to optimize customer conversion rate and work on churn management by “stopping the leak”.

Optimize Customer Lifecycle Funnel and Key Metrics

To build a successful SaaS company, you need to optimize customer lifecycle funnel and key metrics. The three main component of the customer lifecycle funnel are:

  • Acquire
  • Engage
  • Retain


Bringing in traffic is good for the company but it is effective only when people who are actually interested are attracted. Key acquire metrics helps in identifying the best source of traffic and the cost associated with each customer acquisition – both ideal and real. So, you can compare both acquisition metrics and optimize them by marketing right channels to acquire the best traffic. So, the key metrics include:        

  • Traffic
  • Conversion
  • Customer acquisition cost


Your free trial service is generating high traffic and heavy conversion rate. But, are they becoming paid customers? If not, then either you have issues with your onboarding or misalignment between your website’s perceived value and product’s true value. This is the reason for losing potential customers. The critical engage metrics for your SaaS model will be to take benchmark measurement and then increase the metrics by improving onboarding and communication. So, the key metrics include:

  • Session length
  • Returning session
  • Trial to paid conversion
  • Active users


Acquiring new customers is more expensive and time-consuming than retaining existing users. So, never ignore your original customers. Prevent churning before it happens, by providing best customer support and service. Identify the red flag metrics to reduce churn. Once you have controlled your churn, the key retention metric for growth is Expansion MRR, i.e. to increase revenue from upsells and cross-sells. So, the key metrics include:

  • Activity churn
  • Cancel intent behavior
  • Past due accounts
  • Expansion MRR

It is important to optimize all the metrics if you want to grow your SaaS startup and increase revenue. Gridle ensures that you are able to optimize all these metrics in the best manner possible, so that your SaaS start-up is able to perfectly tap its target consumers.

Consistently trying to think in terms of systems, not goals; processes, not outcomes; and philosophies, not tactics and how it can bring about change that lasts.
More posts by Yash Shah.


Optimizing the Customer Lifecycle for Your SaaS Startup
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