5 Vital Marketing Metrics for SaaS Companies
Data-driven SaaS companies use metrics and KPIs to evaluate their performance. Check out these 5 SaaS marketing metrics that are vital to the success of modern SaaS businesses.
Customer Lifetime Value
Customer lifetime value (CLV) is the total revenue that a SaaS business expects to generate from the average customer throughout their entire lifecycle. CLV may be calculated using the SaaS product’s monthly subscription price and the average duration of a customer’s subscription.
Customer Acquisition Cost
Customer acquisition cost (CAC) is a metric that tracks the total cost associated with a SaaS company gaining a new customer. For a SaaS company to be profitable, its CAC must be lower than its CLV.
Customer Churn Rate
Churn rate is a measure of how often customers terminate their subscription to a SaaS product. A low churn rate means that customers are satisfied with the product, while a high rate of churn might indicate that the product is failing to meet customer needs. A high churn rate predicts low CLV, which impacts the overall profitability of the SaaS business.
SQL Generation
A sales-qualified (SQL) lead is an inbound or outbound lead that has communicated with sales and indicated that they are likely to become a customer. Marketing and sales teams work together in SaaS companies to generate more SQLs and high-quality sales opportunities – the more, the better! Generating SQLs is a critical success factor when it comes to ensuring the profitability and long-term success of a SaaS business.
Revenue
The most important metric for any SaaS company is revenue. Software businesses are expensive to start and often rely on venture capital throughout their early years of operation. To achieve profitability and realize returns for investors, SaaS businesses need to scale revenue quickly and efficiently.
Our innovative Customer Generation marketing methodology leverages 1st-party data to help SaaS businesses identify and generate SQLs from their total addressable market (TAM), resulting in efficient customer and revenue growth. Book a call to learn more!
