SaaS marketing metrics are the compass that guides your business growth. At Find Your Audience, we’ve seen firsthand how tracking the right metrics can transform a company’s trajectory.

But which metrics should you focus on, and what benchmarks should you aim for? This post dives into the essential SaaS marketing metric benchmarks and provides actionable strategies to improve your performance.

Key SaaS Marketing Metrics to Track

At Find Your Audience, we know that tracking the right metrics propels SaaS success. Let’s explore the five most impactful SaaS sales and marketing metrics you should monitor.

Customer Acquisition Cost (CAC)

CAC measures your spending to acquire a new customer. Calculate it by dividing your total sales and marketing expenses by the number of new customers acquired in a given period. A study revealed that the average CAC for SaaS businesses has increased by over 55% in the last five years, emphasizing the need for efficient customer acquisition strategies.

Customer Lifetime Value (CLV)

CLV predicts the total revenue a business can expect from a single customer account throughout their relationship. An Invesp report found that a 5% increase in customer retention rates can boost profits by 25% to 95%. This statistic underscores CLV’s importance for sustainable growth.

Monthly Recurring Revenue (MRR)

MRR represents the predictable total revenue generated by your business from all active subscriptions in a month. It serves as a key indicator of your company’s financial health and growth trajectory. KeyBanc Capital Markets’ SaaS Survey reports that top-performing SaaS companies achieve a median MRR growth rate of 10% month-over-month.

Churn Rate

Churn rate measures the percentage of customers who cancel their subscription within a given time period. Recurly Research found that the average annual churn rate for subscription companies is 5-7%. Top-performing companies try to maintain a churn rate below this average, as even small improvements in churn can significantly impact long-term revenue.

Net Promoter Score (NPS)

NPS gauges customer satisfaction and loyalty by asking how likely customers are to recommend your service. Retently reports that the average NPS for B2B SaaS companies is 30. However, industry leaders often score above 50, indicating high customer satisfaction and strong potential for organic growth through referrals.

These five key metrics provide a comprehensive view of your SaaS company’s performance and highlight areas for improvement. The next section will explore industry benchmarks for these metrics, helping you set realistic goals and measure the effectiveness of your campaigns against competitors.

SaaS Marketing Metric Benchmarks That Matter

Understanding industry benchmarks proves essential for SaaS companies to evaluate their performance accurately. This chapter explores key metrics and their benchmarks to help you set realistic goals and measure your success.

Customer Acquisition Cost (CAC) Benchmarks

Customer Acquisition Cost (CAC) varies significantly based on company size and target market. The average CAC for companies in the SaaS industry is $702. However, this can vary widely across industries, with the fintech sector experiencing the highest customer acquisition costs.

Customer Lifetime Value (CLV) Across Sectors

CLV benchmarks differ across SaaS sectors. B2B SaaS companies typically try to achieve a CLV of 3-5 times their CAC. For instance, if your CAC is $1,000, you should target a CLV of $3,000 to $5,000. In the B2C space, CLV tends to be lower due to shorter customer lifecycles. The average CLV:CAC ratio for SaaS companies is 3:1, but top-performing companies often achieve ratios of 5:1 or higher.

MRR Growth Rates: Startups vs. Established Companies

MRR growth rates vary dramatically between startups and established companies. Early-stage startups often target aggressive month-over-month MRR growth rates of 15-20% or more. As companies mature, these rates typically slow down. Bessemer Venture Partners breaks down the steps it takes for a company to go from $1 to $10 million of ARR, providing insights into growth rates at different stages.

Established SaaS companies with over $100 million in revenue often try to achieve annual growth rates of 15-25%. These figures represent median values, and individual company performance can vary significantly based on factors like market conditions, product-market fit, and competitive landscape.

Acceptable Churn Rates by Product Type

Churn rates can make or break a SaaS business, and acceptable levels vary by product type and target market. For B2B SaaS companies, an annual churn rate below 5% is generally considered good, while anything above 10% signals a need for immediate attention. Enterprise-focused SaaS products often achieve lower churn rates (sometimes as low as 1-2% annually) due to longer contracts and higher switching costs.

B2C SaaS products typically experience higher churn rates. B2C SaaS companies see average annual churn rates of 7-10%. However, products with strong network effects or high user engagement can achieve lower rates.

Churn rates often correlate with pricing tiers. Customers on higher-priced plans tend to churn less frequently, with enterprise plans seeing churn rates as low as 2-3% compared to 8-10% for lower-tier plans.

NPS Benchmarks for B2B and B2C SaaS

Net Promoter Scores provide valuable insights into customer satisfaction and loyalty. For B2B SaaS companies, an NPS of 30-40 is considered good, while scores above 50 are excellent. Top-performing B2B SaaS companies have reported NPS scores in the 40-50 range.

B2C SaaS companies often see lower NPS scores due to higher customer expectations and more competition. A good NPS for B2C SaaS typically falls in the 20-30 range, with scores above 40 considered excellent. Some industry leaders have reported NPS scores in the 60s, setting a high bar for the industry.

These benchmarks serve as guidelines rather than hard rules. Your specific market, product complexity, and target audience all play crucial roles in determining what good performance looks like for your SaaS business. Regular tracking and analysis of these metrics, combined with a deep understanding of your unique business context, will help you set appropriate goals and drive continuous improvement. In the next chapter, we’ll explore strategies to enhance your SaaS marketing metrics and outperform these industry benchmarks.

How to Boost Your SaaS Marketing Metrics

Improving your SaaS marketing metrics requires a strategic approach and consistent effort. Let’s explore effective strategies to enhance your performance across key metrics.

Slash Your Customer Acquisition Cost

Reduce CAC by optimizing your marketing channels. Focus on channels that deliver the highest ROI. Content marketing can be an effective strategy to reduce CAC compared to paid advertising. Implement a robust content strategy and leverage SEO to drive organic traffic.

Refine your targeting. Create buyer personas based on the type of customers you are targeting and leverage data to optimize them from time to time. This can help you focus your efforts on the most promising segments.

Automate your marketing processes where possible. Marketing automation can lead to increased sales productivity and reduced marketing overhead.

Maximize Customer Lifetime Value

To increase CLV, focus on customer success and engagement. Implement a strong onboarding process. A well-designed onboarding process can help educate customers and increase their likelihood of staying loyal to your business.

Upselling and cross-selling are powerful tools for boosting CLV. Develop a strategic approach to offering additional value to your existing customers.

Personalization is key. Use data-driven insights to tailor your offerings and communications to individual customer needs.

Supercharge Your Monthly Recurring Revenue

To boost MRR, focus on expansion revenue. Implement a tiered pricing strategy that encourages upgrades as customers grow.

Reduce friction in the sales process. Develop a robust lead nurturing strategy to guide prospects through the sales funnel more effectively.

Consider offering annual contracts with a discount. This not only increases your immediate MRR but also can improve retention.

Lower Your Churn Rate

Improve your product’s user experience. A seamless, intuitive interface can significantly reduce churn. Conduct regular user testing and implement feedback to enhance your product continuously.

Provide exceptional customer support. Respond promptly to customer inquiries and issues. Try to resolve problems within the first interaction to boost customer satisfaction and loyalty.

Implement a customer feedback loop. Regularly survey your customers to identify pain points and areas for improvement. Act on this feedback to show customers you value their input. This can help reduce customer churn, as 59% of customers decreased their business with a company or switched to a competitor due to poor customer experience.

Elevate Your Net Promoter Score

Create a customer-centric culture. Train your team to prioritize customer satisfaction in every interaction. Happy customers are more likely to become promoters of your brand.

Exceed customer expectations. Deliver more value than promised. This could include surprise features, personalized communications, or exclusive content for loyal customers.

Address negative feedback promptly. When you receive a low NPS score, reach out to the customer immediately. Try to understand their concerns and take concrete steps to resolve them. This proactive approach can turn detractors into promoters.

To ensure the success of your marketing strategies, it is essential to track and analyze performance metrics. Constantly monitor and adjust your strategies based on performance metrics to ensure you’re maximizing your marketing efforts. For more guidance on marketing metrics to track for success, consider improving ROI, customer acquisition, and retention with actionable insights and tips.

Final Thoughts

SaaS marketing metric benchmarks provide valuable insights for companies to evaluate their performance. These metrics offer a comprehensive view of a company’s growth potential and areas for improvement. Companies can set realistic goals by comparing their metrics to industry standards while considering their specific market and product.

Improving metrics requires a strategic approach focused on reducing costs, enhancing customer engagement, and optimizing processes. Companies should prioritize reducing CAC, boosting CLV, increasing MRR, lowering churn, and elevating NPS. These efforts will position companies to outperform competitors and drive sustainable growth in the dynamic SaaS landscape.

Find Your Audience specializes in helping SaaS companies optimize their marketing efforts and drive growth. Our scalable, fractional marketing team can provide the expertise and resources needed to improve marketing metrics and achieve business goals. Consistent monitoring and analysis of SaaS marketing metrics, coupled with targeted actions, will lead to long-term success in the industry.