Table of Contents
What KPIs do SaaS companies use?
These SaaS metrics and KPIs are common examples of the top metrics used by SaaS companies.
- Net Monthly Recurring Revenue (MRR)
- Quick Ratio.
- Net Promoter Score (NPS)
- MoM MRR Growth.
- Customer Acquisition Cost (CAC)
- Customer Lifetime Value (LTV)
- Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC)
- Net Burn Rate.
How do I choose the right KPI for SaaS?
How To Determine KPIs
- Choose KPIs directly related to your business goals.
- Focus on a few key metrics, rather than a slew of data.
- Consider your company’s stage of growth.
- Identify both lagging and leading performance indicators.
What are the most important metrics for SaaS?
The 7 SaaS growth metrics that matter most
- Churn.
- Activation rate.
- Monthly recurring revenue (MRR) / annual recurring revenue (ARR)
- Cost of acquiring a customer (CAC)
- Customer lifetime value (CLV or LTV)
- Expansion revenue.
- Net Promoter Score (NPS)
What are some important KPIs in SaaS and how do you achieve them?
The 18 Most Important SaaS Metrics and KPIs
- Monthly Unique Visitors.
- Signups.
- Product-Qualified Leads (PQLs)
- Qualified Lead Velocity Rate (LVR)
- Organic vs. Paid Traffic ROI.
- Viral Coefficient.
- Conversion Rate to Customer.
- Average Revenue Per Account (ARPA)
What are good SaaS margins?
As the customer base matures and the company reaches scale, most SaaS companies should achieve gross margins in the 75\%–80\% range, depending on the level of professional services required to deploy the solutions.
How many SaaS metrics and KPIs should you track?
Since we’re a data-driven SaaS company—and one that also helps other companies monitor their most important performance metrics—we’ve compiled a list of the 18 SaaS metrics and KPIs all companies should track. It’s not easy to know which KPIs to track for sales, marketing, and customer success in a SaaS company.
Which KPI describes the stage of a B2B SaaS company?
An important KPI describing the stage of a B2B SaaS company is surely its monthly recurring revenue (MRR) being the sum of the total recurring licence revenue normalized (i.e. deferred) into a monthly account. Although this seems to be a no-brainer there are a few details we would like to highlight.
How do you measure the profitability of a SaaS business?
You can measure the profitability of a SaaS business through KPIs such as Customer Acquisition Cost (CAC), Customer Lifetime Value (LTV) and Average Revenue per Acquisition (ARPA), Annual Run Rate (ARR), and Workforce productivity. Find out all about these SaaS metrics for business in our ‘Key SaaS metrics’ section.
What do investors look for in a B2B SaaS company?
Investors also like to see historic numbers — thus, we suggest starting early. An important KPI describing the stage of a B2B SaaS company is surely its monthly recurring revenue (MRR) being the sum of the total recurring licence revenue normalized (i.e. deferred) into a monthly account.