A-Z of SaaS

A-Z of SaaS that you must know and should not avoid

It’s the ABC for winning SaaS. Before you know everything about something, you need to start.

M for money and S for SaaS, learn everything about them too fast. Enough of the Jokes, let’s get to the meat.

A large percentage of the founders don’t have previous exits under their belt that is why in order to have one, you should know the terms which are important for operating a SaaS business.

If you know the terms you can search, learn, implement, make changes, and again implement but if you don’t know what to search it will be hard to search.

SaaS (software as a service) may have tough abbreviations but the use of a product has to be easy if one needs to succeed. Of course, customers won’t understand the tough part of creating something and then delivering 100% of the time but we need to.

Let’s begin

A– Analysis

The most commonly used analysis in the SaaS world is Cohort analysis.

Cohort analysis is a method of behavioral analytics in which you group your users to help monitor and interpret their behaviors based on their mutual characteristics. Analysis of cohorts helps you to ask more precise, tailored questions and make better product choices that will minimize turnover and increase sales dramatically.

B- Burn rate

The burn rate is the rate at which a business uses its money to cover overheads before generating positive cash flow. It is also regarded as a net-negative cash flow metric.

C- Churn rate

The churn rate is the rate at which consumers quit doing business with an organization, also known as customer churn. The best scenario is when your customer keeps subscribed to your service until you surpass the customer acquisition cost.

D- Dunning

Failed payments and rejected credit cards to recover lost money in the payment handling process.

E- Engagement loop

If your product(SaaS)user is using the same things repeatedly that is the engagement loop. The user might be motivated at first to use the functionality and then the results might be keeping them to keep going in loops.

F- Freemium

Freemium is a business model where the products are being offered free for the initial days and then overtaken by the premium model. It is like a food sample to give taste to the user.

G- Growth hacking

This is the way to grow your users by spending less amount of money but by combining it with product development work as well.

H- Horizontal integration

In this, you acquire and merge companies that might be the direct competition.

I- Iterate

Make your product better with every iteration. Iteration means to perform repeatedly.

J- Jobs to be done

What happens when the market changes like today’s time? New needs arise and that leads to new demands or “jobs to be done” which then forces users to look for the products with the innovative offerings.


Key performance indicators. Which KPI are you tracking?

L- Loyalty loop

If your users are buying repeatedly from you that means your customer service is great and the product is solving the customer problems.


Monthly recurring revenue. It is the measure of monthly predicted revenue.

N- New bookings

It defines the number of contracts you signed up or the new sales made with the new or the existing customers.

0- On-boarding

Welcoming new customers by helping them to solve their most important problem. It can be done with the product tours or with the demo sessions.

P- Prioritize

Which functionality is more important to your customer? build that first.

Q- Quality

The quality of the product has to be good in terms of design and functionalities, both.

R- Road map

This is a strategic plan to define the functionalities that need to be rolled out at a particular time.

S- Sprint

The set amount of work that needs to be completed in a set amount of time. “Release in smaller chunks to achieve more”.

T- Total contract value

If you are talking about the metric to measure the one-time charges and the recurring charges, you are talking about the TCV.

U- Use case

The use case is the actions that the user will take on your product.

V- Value prop

If you know why your customers should use your product instead of your competitor then that is your value prop.

W- Win rate

You submitted the proposal of your product to 10 potential customers and 2 got accepted then 20% is your win rate.

X- X.O

It is a version 1.0

Y- Year over year

Year-over-year (YOY) is a method of comparing two or more calculated events in order to compare, the outcomes of one period with those of a similar period on an annual basis.

Z- Zero latency

If there is no delay between the time of the request and the response delivered, you have achieved zero latency.