SaaS Marketing Metrics: The 15 KPIs That Actually Matter
The fifteen SaaS marketing metrics that drive growth decisions, from CAC and LTV to MRR components and churn analysis.
SaaS marketing generates mountains of data. Most of it is noise. These fifteen metrics are the signal that drives growth decisions.
Customer Acquisition Cost measures the total cost to acquire one paying customer. Calculate it by dividing total sales and marketing spend by the number of new customers in a period. CAC tells you whether your growth is sustainable.
Customer Lifetime Value represents the total revenue a customer generates over their relationship with you. LTV should be at least 3x CAC for a healthy SaaS business. Below that ratio, you are spending too much to acquire customers relative to what they generate.
Monthly Recurring Revenue is your baseline growth metric. Track MRR by component: new MRR from first-time customers, expansion MRR from upgrades, and churned MRR from cancellations. The relationship between these components reveals your growth trajectory.
Churn rate measures the percentage of customers who cancel in a given period. For B2B SaaS, monthly churn above 3 percent is a growth ceiling. At that rate, you need to acquire 36 percent of your customer base annually just to stay flat.
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