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.
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.
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.
CAC Payback Period: The time needed to recoup the CAC from the revenue a new customer brings in.
Conversion Rate: The percentage of leads that turn into paying customers.
In a results-oriented craft such as marketing, the focus is on achievement, goals, and KPIs.
Doug Zarkin, CMO @ Pearle Vision
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.
Net Promoter Score (NPS): A gauge of customer satisfaction and loyalty based on their likelihood to recommend your product.
Customer Lifetime Value (CLTV): The estimated revenue a customer will generate throughout their relationship with the company.
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.
Annual Recurring Revenue (ARR): The total annual revenue from subscription-based services.
Average Revenue Per User (ARPU): The average revenue generated per user or account.
You don’t learn to walk by following rules. You learn by doing and falling over.
Richard Branson, Virgin Group Founder
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.
Lead-to-Customer Ratio: The percentage of leads converting into paying customers.
Marketing Qualified Leads (MQLs): Leads identified as more likely to become customers based on specific criteria and engagement.
Sales Qualified Leads (SQLs): Leads vetted by the sales team and ready for direct sales efforts.
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.
Traffic Sources: The origins of website traffic, including organic search, paid search, social media, and referrals.
Content Engagement: Metrics like time on page, bounce rate, and social shares for content pieces.
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.
Click-Through Rate (CTR): The percentage of people who click on a marketing link, such as in an email or ad.
Cost Per Click (CPC): The cost incurred for each click on a paid advertisement.
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.
Social Media Engagement: Metrics such as likes, shares, comments, and followers on social media platforms.
Search Engine Ranking: The position of the company’s website in search engine results for relevant keywords.
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.
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.
As a Digital Marketing agency focused on SaaS, we've ample experience in looking at SaaS KPIs for low-ticket, as well as high-ticket items. Whether you are in the early-startup, growth, or mature stages of your SaaS, ask us for a review of your entire SaaS Marketing KPIs. We will gladly share our industry experience through a chat. Get in touch.