SaaS Metrics for founders and marketers
A SaaS (software as a service) business faces a unique set of challenges in growing their business and acquiring new customers.
How do you assess a SaaS business?
As a subscription based business, SaaS companies should measure key metrics that track recurring revenue, customer retention, and customer acquisition.
What metrics should SaaS companies track?
Here are some of the top SaaS metrics and KPIs to evaluate your business.
- Net Promoter Score
- Month over Month MRR Growth Rate
- Customer Acquisition Cost
- Customer Lifetime Value
- Churn Rate
- Customer Retention Rate
SaaS KPI Examples
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Customer Acquisition Cost (CAC)
Measure Marketing and Sales Efficiency with the Customer Acquisition Cost (CAC) KPI
Customer Lifetime Value (LTV)
Measure The Monetary Value of Each New Customer With The Customer Lifetime Value (LTV) KPI
Customer Lifetime Value to Customer Acquisition Cost (LTV:CAC)
Measure marketing and sales efficiency with the LTV:CAC Ratio KPI
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MoM MRR Growth
Measure how fast your MRR is growing with MoM MRR Growth
Net Burn Rate
Manage your SaaS startup’s runway with the Net Burn KPI
Net Promoter Score (NPS)
Measure Customer Loyalty and Satisfaction with the Net Promoter Score (NPS) KPI
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Quick Ratio
Measure Your SaaS Startups Growth with the Quick Ratio
Customer Churn Rate
Measures the rate at which a subscription based company is losing its customers due to account cancellations or non-renewal of subscriptions
Customer Lifetime Value (CLV or LTV)
Customer Lifetime Value (CLV or LTV) measures the amount of money a customer brings in over their lifetime with the company
Customer Retention Rate
Measures the rate at which a subscription based company holds on to its customers.
Monthly Recurring Revenue (MRR)
Measures the revenue a company is generating from its subscription accounts on a monthly basis.
Monthly Recurring Revenue (MRR) Expansion Rate
Measures the rate at which a subscription based business can expand its monthly recurring revenue by expanding revenue among current accounts (‘upselling’).
Net Monthly Recurring Revenue (MRR)
Net monthly recurring revenue refers to the monthly value of newly acquired accounts to your sales system and monthly added value to current accounts, minus the value lost from closed or reduced accounts.
Viral Coefficient
A measure of how quickly and how widely a marketing message spreads online.