The global market for software-as-a-service (SaaS) is expected to reach $228 billion by next year, more than double its size in 2014.

That’s not wholly surprising, given SaaS is still a relatively young branch of technology, but it does show how rapidly cloud technology and SaaS use cases have grown this decade.

Research house Statista says the technology has a particularly high penetration rate amongst the human resources, collaboration software, and customer relations industries.

To take advantage of the booming market, one SaaS expert, Thomas Griffin, recommends companies need to be tracking six key metrics:

  • Monthly recurring revenue, which outlines whether a SaaS business is sustainable;
  • Cost per acquisition, which keeps marketing spend in check;
  • Customer churn, to ensure current customers are getting value;
  • Average revenue per customer, as a way of analysing business growth;
  • Customer engagement score, to give an overview of how the business works with customers;
  • Lead-to-customer rate, which shows how effective the marketing and sales strategy is.

“Start with these, and you’ll be able to easily determine strong and weak points of your SaaS business,” Griffin wrote for Forbes.

“If you work on improving these metrics, you’ll be able to grow your business to new heights.”

This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.