## B2B SaaS

### Common business problems & personas
B2B SaaS companies often grapple with a core set of challenges that directly impact growth and sustainability:

#### Key business problems
- **High churn rates** – Customers discontinuing subscriptions, leading to revenue loss and reduced customer lifetime value.
- **Low trial-to-paid conversion** – Users not converting from free or trial plans to paid subscriptions.
- **Poor feature adoption** – Users not utilizing key features that drive product value and stickiness.
- **Long sales cycles** – Extended time from initial lead engagement to customer conversion.
- **Low customer satisfaction** – Reflected in poor Net Promoter Scores (NPS) and negative customer feedback.
- **Inefficient onboarding** – Users dropping off or struggling during initial setup and product adoption.
- **Expansion revenue challenges** – Difficulty identifying opportunities or successfully upselling and cross-selling existing customers.
- **High support ticket volume** – An elevated number of support requests, often indicating underlying product issues or user friction.

#### Primary personas & their pain points
**Product managers**
- **Pain points:** Inability to identify which features drive retention, difficulty prioritizing roadmap items, lack of data on user behavior and product usage.
- **PostHog solutions:** Comprehensive feature usage tracking, granular cohort analysis, session recordings for in-depth UX insights, robust A/B testing for feature optimization and validation.

**Customer success managers**
- **Pain points:** Reactive churn management, challenges in proactively identifying at-risk customers, limited visibility into overall customer health.
- **PostHog solutions:** Data-driven churn prediction models, customizable customer health scoring, proactive engagement tracking, automated alerts for at-risk accounts based on behavioral signals.

**Sales teams**
- **Pain points:** Extended sales cycles, inefficient lead qualification processes, difficulty understanding specific prospect needs and product fit.
- **PostHog solutions:** Product usage-based lead scoring, detailed prospect behavior tracking, optimization of conversion funnels to accelerate deal velocity.

**Marketing teams**
- **Pain points:** High customer acquisition costs (CAC), inaccurate campaign attribution, difficulty measuring the true return on investment (ROI) of marketing efforts.
- **PostHog solutions:** Advanced UTM tracking, comprehensive conversion funnel analysis, cohort analysis by acquisition source, customizable campaign performance dashboards.

**Executives**
- **Pain points:** Lack of holistic visibility into business health, challenges in making data-driven strategic decisions, cumbersome stakeholder reporting.
- **PostHog solutions:** Intuitive executive dashboards, real-time key metric tracking, automated reporting, and actionable business intelligence insights.

### Key metrics & PostHog 
#### MRR/ARR (monthly/annual recurring revenue)
**Importance:** Measures the predictable revenue a SaaS business generates monthly or annually. It's crucial for forecasting, valuation, and understanding the company's financial health and growth trajectory.

**PostHog approach:** Track subscription events (subscription_created, subscription_upgraded, etc.) with properties like plan_tier, amount, and currency. PostHog helps analyze conversion funnels (e.g., trial_started to subscription_created), visualize revenue retention with cohort analysis on dashboards, and set up alerts for significant MRR changes. For non-technical users, autocapture on pricing pages and CTAs can power no-code funnels and session recordings to optimize conversion flows and pricing interactions.

#### CAC (customer acquisition cost)
**Importance:** The average cost to acquire a new customer. Understanding CAC is vital for marketing efficiency, profitability, and ensuring sustainable growth.

**PostHog approach:** Track marketing touchpoints (ad_clicked, demo_scheduled) and lead generation form submissions with properties like source, campaign, and UTM parameters. Integrate marketing spend data into PostHog for a unified view. Use funnel analysis to identify efficient acquisition channels and dashboards to visualize CAC trends by channel. Autocapture can track landing page visits and form submissions, enabling non-technical users to analyze lead quality by traffic source and optimize landing page UX with session recordings.

#### LTV (lifetime value)
**Importance:** The total revenue a business expects to generate from a single customer relationship over their lifetime. A high LTV indicates strong customer relationships and product value, enabling higher CACs and more aggressive growth strategies.

**PostHog approach:** Track all revenue-generating activities (subscription_payment, addon_purchase, upgrade) with customer segment and acquisition properties. Conduct cohort analysis for revenue retention and correlation analysis to identify high-value behaviors. PostHog's predictive analytics can forecast LTV. For non-technical users, autocapture can track feature usage and upgrade page visits to understand engagement patterns that correlate with high LTV, allowing for dashboards showing feature adoption by segment and alerts for potential churn signals impacting LTV.

#### Churn rate
**Importance:** The rate at which customers cancel their subscriptions or cease to use a service. High churn is detrimental to growth and directly impacts MRR/ARR and LTV, highlighting product-market fit or customer experience issues.

**PostHog approach:** Monitor engagement and usage patterns (feature_used, login, session_started) with properties like user_activity_level and feature_adoption. Use session recordings to understand behavior of churned users and correlation analysis to pinpoint churn indicators. Set up automated churn prediction models and alerts for at-risk users. Non-technical users can leverage autocapture to track declines in activity, analyze pages churned users stop visiting, and use session recordings to review churned user journeys.

#### NPS (net promoter score)
**Importance:** A widely used metric to gauge customer loyalty and satisfaction, indicating a customer's willingness to recommend a product or service. High NPS often correlates with retention and expansion revenue.

**PostHog approach:** Implement in-app NPS surveys using PostHog's survey feature. Track nps_survey_submitted events with user segment and usage properties. Analyze correlations between NPS and product usage patterns. Non-technical users can easily create surveys, configure triggers, and track completion rates. Dashboards can show NPS trends by segment, and session recordings can analyze user interactions with survey prompts to optimize feedback collection.

#### Feature adoption
**Importance:** Measures the extent to which users discover, use, and continue to use specific product features. High feature adoption indicates that users are deriving value, which is crucial for retention, upsell opportunities, and validating product development efforts.

**PostHog approach:** Track granular feature usage (feature_accessed, feature_completed) with feature name and user segment properties. Use funnel analysis for onboarding flows and session recordings to identify friction. Implement feature flags for controlled rollouts and A/B testing for optimization. Non-technical users can use autocapture for feature page visits and button clicks, analyze user journeys to feature discovery, and create dashboards for adoption rates. Alerts can be set for changes in feature usage.