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Which KPI’s should SAAS-B2B companies track?

Key Performance Indicators (KPIs) are essential metrics that help SaaS B2B companies monitor their performance and make data-driven decisions. Here is a list of crucial KPIs that SaaS B2B companies should track:

1. Monthly Recurring Revenue (MRR): MRR measures the total predictable recurring revenue generated by your customers each month. It's a crucial metric for understanding revenue stability and growth.

2. Annual Recurring Revenue (ARR): ARR is the yearly version of MRR, representing the total revenue generated from subscriptions over a year.

3. Customer Acquisition Cost (CAC): CAC measures the total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.

4. Customer Lifetime Value (LTV): LTV is the total revenue a customer generates for your business during their entire relationship with your company. It helps you understand the long-term value of your customers.

5. Churn Rate: Churn rate represents the percentage of customers who cancel their subscription during a given period. It's crucial to monitor churn rate to identify trends and take action to reduce customer attrition.

6. Net Revenue Retention (NRR): NRR measures the revenue retained from existing customers, accounting for upgrades, downgrades, and churn. It helps evaluate the success of your customer retention and upselling strategies.

7. Lead-to-Customer Conversion Rate: This metric tracks the percentage of leads that ultimately convert into paying customers. It helps you evaluate the effectiveness of your sales and marketing efforts.

8. Sales Cycle Length: The time it takes from the initial contact with a lead to closing a deal. Shortening the sales cycle can increase efficiency and reduce the cost of customer acquisition.

9. Active Users: Track the number of daily and monthly active users of your SaaS product to understand user engagement and growth trends.

10. Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS): These metrics gauge customer satisfaction and the likelihood of customers recommending your product to others. High CSAT and NPS scores can indicate a strong product-market fit and customer loyalty.

By tracking these KPIs, SaaS B2B companies can gain valuable insights into their business performance, customer satisfaction, and areas for improvement. Regular analysis of these metrics helps optimize operations, increase customer retention, and drive growth.

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