A CMO needs to keep a sharp eye on a range of SaaS Marketing KPIs to ensure strategies are hitting the mark and the company's product and growth are on track.
SaaS Marketing KPIs for the CMO
As a CMO, keeping tabs on certain SaaS marketing KPIs is crucial. These metrics aren’t just numbers—they’re the heartbeat of your business, showing you if your strategies are on point and if your growth is on track. Here are the KPIs that matter most.
Customer Acquisition Metrics
These metrics tell you how efficiently you are acquiring new customers. Don’t stress over CAC during PMF. Focus on Conversion Rates. When scaling, keep your CAC to CLTV ratio under 30%. Once established, aim for a CAC payback period of under 12 months.
Customer Acquisition Cost (CAC): The total expense to bring in a new customer, covering marketing and sales costs.
- Typical SaaS CAC ranges from $500 to $2000, but this can vary widely.
- Lowering CAC while maintaining or increasing CLTV is a sign of efficient growth.
CAC Payback Period: The time needed to recoup the CAC from the revenue a new customer brings in.
- Aim for a CAC payback period of less than 12 months to ensure faster ROI and sustainable growth.
Conversion Rate: The percentage of leads that turn into paying customers.
- Need to monitor this aggressively.
- Good indicator of your overall "product fit" with your audience.
- Typically low level single digits at the start. Mature SaaS can get high as 10%.
In a results-oriented craft such as marketing, the focus is on achievement, goals, and KPIs.
Doug Zarkin, CMO @ Pearle Vision
Customer Retention Metrics
Tells you if your customers like to stay around. Aim for a single-digit churn rate, ideally below 5% for enterprise clients. Enhance CLTV by reducing churn and upselling to increase customer longevity. Strive for an NPS of 30 or higher; over 50 is gold!
Customer Churn Rate: The rate at which customers cancel their subscription over a specific period.
- Low-ticket items: Aim for 10% or lower
- Enterprise: Aim for 5% or less
- Maintaining a low churn rate is crucial for sustainable growth and profitability
Net Promoter Score (NPS): A gauge of customer satisfaction and loyalty based on their likelihood to recommend your product.
- A good NPS score typically falls between 30 and 50.
- An excellent NPS score would be above 50, suggesting strong customer satisfaction and loyalty.
Customer Lifetime Value (CLTV): The estimated revenue a customer will generate throughout their relationship with the company.
- CLTV should be at least 3 times the Customer Acquisition Cost (CAC).
Revenue Metrics
Focus on your ARR; it's the key to keeping your business afloat. MRR gives a current run-rate. ARPU reflects the value of your offering. For simple items, aim for a $100 ARPU. For Enterprise, $1K ARPU is the benchmark to cross.
Monthly Recurring Revenue (MRR): The total monthly revenue from subscription-based services.
- Early-Stage SaaS: Goal is to get past $10K MRR
- Growth-Stage SaaS: Shoot for $100K MRR
- Mature SaaS: $500K MRR
Annual Recurring Revenue (ARR): The total annual revenue from subscription-based services.
- Early-Stage SaaS: $100K+ ARR
- Growth-Stage SaaS: $1M+ ARR
- Mature SaaS: $5M+ MRR
Average Revenue Per User (ARPU): The average revenue generated per user or account.
- Low-Touch SaaS Products: $100 ARPU
- Mid-Touch SaaS Products: $1,000 ARPU
- High-Touch SaaS Products: $1,000+ ARPU
You don’t learn to walk by following rules. You learn by doing and falling over.
Richard Branson, Virgin Group Founder
Marketing Performance Metrics
Keep a close eye on your Lead-Gen numbers; they reflect your marketing efforts. Not all leads are equal (MQLs vs SQLs), so track them through your sales cycle. This area should be the most proactive part of your marketing engine.
Lead Generation: The number of new leads acquired through various marketing campaigns. This includes new signs ups/free trials/demo requests.
- Product-Led: Need high number of signups to keep the pipeline full.
- Sales-Led: Scale your team based on the lead-gen numbers.
Lead-to-Customer Ratio: The percentage of leads converting into paying customers.
- Early to Growth Stage SaaS: Are in the lower range of single digits
- Mature Stage SaaS: As high as 10%.
Marketing Qualified Leads (MQLs): Leads identified as more likely to become customers based on specific criteria and engagement.
- Keep improving the lead-qualification process.
- Optimize the sales funnel.
Sales Qualified Leads (SQLs): Leads vetted by the sales team and ready for direct sales efforts.
- Establish clear criteria for SQLs.
- Use CRM tools to track and manage SQLs.
Digital Marketing Metrics
Vanity numbers are fine at the PMF stage. A single mention on ProductHunt can skew metrics. For established SaaS, these numbers are useful for the marketing team, adding gamification to the effort, but aren't directly tied to sales.
Website Traffic: The number of visitors to the company’s website.
- Use SEO to increase organic traffic.
- Invest in paid advertising for targeted traffic.
- Regularly update your blog and resources.
Traffic Sources: The origins of website traffic, including organic search, paid search, social media, and referrals.
- Aim to get half of the traffic through organic searches
- Diving the remaining traffic equally between Paid, Social and Referrals.
- This provides a good blend of sustainable growth
Content Engagement: Metrics like time on page, bounce rate, and social shares for content pieces.
- Time on Page: Shoot for 2+ minutes average
- Bounce Rate: 60% or less
- Social Shares: Varies by platform, but aim for 100+ shares for trending posts on LinkedIn.
Campaign Performance Metrics
Granular campaign data is crucial, especially for GTM and scaling up operations. Aim for a ROMI of +5, (+3 for ROAS.) Good CTR benchmarks are over 3%. Target a CPC of $4 or lower for sustainable growth.
Return on Marketing Investment (ROMI): The revenue generated from marketing activities relative to the costs incurred.
- A ROMI of 5:1 is considered strong, indicating 5x return on investment.
- Focus on high-ROI channels and continuously optimize campaigns.
Click-Through Rate (CTR): The percentage of people who click on a marketing link, such as in an email or ad.
- A CTR of 2-3% is typically considered good for email marketing, while paid search ads often aim for a CTR of 3-5%.
- Use compelling headlines, clear CTAs, and targeted messaging to improve CTR.
Cost Per Click (CPC): The cost incurred for each click on a paid advertisement.
- CPC can vary widely; for SaaS, it typically ranges from $1 to $4. Lowering CPC while maintaining quality traffic is ideal.
- Optimize ad bidding strategies, use negative keywords, and continuously test ad variations to manage CPC effectively.
Brand Awareness Metrics
These metrics are important, especially in Product-Led Growth models. They motivate teams and add a gamification element. It's also smart to monitor competitor numbers.
Brand Impressions: The number of times the brand is displayed, regardless of user interaction.
- Early-Stage SaaS Companies: 50K monthly impressions
- Growth-Stage SaaS Companies: 250K monthly impressions
- Mature SaaS Companies: 1M+ monthly impressions
Social Media Engagement: Metrics such as likes, shares, comments, and followers on social media platforms.
- These vary by platform and audience size, but consistent growth is key. Also a good idea to monitor competitor numbers to see movement.
Search Engine Ranking: The position of the company’s website in search engine results for relevant keywords.
- SEO is important for organic traffic. Focus on top 10 keywords that generate leads and have them rank on top 5 of SERPs.
Product and Usage Metrics
Not really a marketing metrics, but still important to keep track off. Get proper market validation with at least 1K MAUs. Focus on user onboarding and engagement strategies to go past 60% of Feature Usage. Hear user feedback and enhance product accordingly.
Active Users: The number of users actively engaging with the product. Monitor Monthly Active Users (MAUs).-
Early-Stage SaaS Companies: Aim for 1K to 3K MAUs.
- Growth-Stage SaaS Companies: Aim for 3K - 30K MAUs.
- Mature SaaS Companies: Aim for 30K+ MAUs.
- Consider: Focus on user onboarding and engagement strategies. Monitor active user metrics regularly to identify trends and improve user retention. Use in-app messaging and personalized emails to keep users engaged.
- High Engagement Features: Aim for 60-80% of active users engaging with key features.
- Moderate Engagement Features: Aim for 30-50% of active users engaging.
- Low Engagement Features: Below 30% engagement may indicate the need for feature reevaluation or improvement.
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Consider: Track usage of individual features to understand which are most valuable to users. Conduct user surveys and feedback sessions to gather insights on feature utility. Continuously iterate and improve features based on user behavior and feedback.
- Net Promoter Score (NPS): Aim for an NPS of 30 or higher; above 50 is excellent.
- Customer Satisfaction (CSAT): Aim for a CSAT score of 80% or higher.
- Product Ratings: Aim for an average rating of 4 stars or higher on review platforms.
- Consider: Regularly collect and analyze customer feedback through surveys and review platforms. Address negative feedback promptly and use it to make product improvements. Highlight positive reviews and testimonials to build credibility and attract new customers.
Get your SaaS Marketing KPIs
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