Top Metrics Every B2B SaaS Marketer Should Track
Tracking the right metrics is like having a compass in the world of B2B SaaS marketing. It keeps you on course, showing you what’s working, what’s not, and where to make changes that drive real impact. When it comes to building a winning B2B SaaS marketing strategy, understanding these essential metrics can set you apart, helping you make data-driven decisions that keep customers engaged and revenue growing.
Let’s look at the key metrics every B2B SaaS marketer should focus on to keep campaigns efficient, goals in reach, and growth on track.
1. Customer Acquisition Cost (CAC)
What it is: CAC measures the cost of acquiring a new customer. It includes all sales and marketing expenses (think advertising, salaries, software) divided by the number of customers acquired in that period.
Why it matters: CAC is the cornerstone of a sustainable B2B SaaS marketing strategy. Knowing how much it costs to bring on a new customer lets you see if you’re spending wisely—or if there’s room to improve efficiency. If your CAC is too high, it’s a sign that you might need to optimise your campaigns, improve targeting, or re-evaluate your messaging.
2. Customer Lifetime Value (LTV)
What it is: LTV estimates the total revenue a customer is expected to bring over the duration of their relationship with your company.
Why it matters: LTV helps you understand the long-term value of a customer and, in combination with CAC, lets you gauge profitability. A higher LTV means each customer is contributing more to your revenue over time. For B2B SaaS, LTV ratio is key—you want this to be at least 3:1 to show you’re getting strong returns on your acquisition investments.
3. Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR)
What it is: MRR and ARR represent the predictable revenue your business generates each month or year from subscriptions.
Why it matters: These metrics are critical for understanding revenue stability. MRR and ARR show how your revenue grows month-to-month and year-to-year, providing a reliable snapshot of your business’s health. Monitoring MRR and ARR trends also highlights growth or churn, offering insights into the success of your B2B SaaS marketing strategy.
4. Churn Rate
What it is: Churn rate is the percentage of customers who cancel their subscriptions within a specific period.
Why it matters: In the SaaS world, retaining customers is just as important as acquiring new ones. High churn rates signal that customers aren’t finding value or engaging with your product over time. Keeping churn low is essential for a sustainable growth model, and understanding why customers churn can lead to actionable insights for product improvement, customer support, and your marketing approach.
5. Net Promoter Score (NPS)
What it is: NPS measures customer satisfaction by asking a simple question: “On a scale of 1-10, how likely are you to recommend us to a friend or colleague?” Scores help categorise customers as promoters, passives, or detractors.
Why it matters: A high NPS indicates a strong, loyal customer base, which often correlates with lower churn and higher LTV. Plus, satisfied customers can be some of your best marketers, sharing positive experiences that bring in new business. Use NPS as an indicator of where to focus for customer engagement and to refine your B2B SaaS marketing strategy.
6. Activation Rate
What it is: Activation rate measures how many users reach a key milestone, such as completing onboarding or experiencing a product’s “aha moment.”
Why it matters: Activation is often the make-or-break stage in a customer’s journey. Tracking activation rates can reveal how effective your onboarding process is and how well your product meets initial expectations. A low activation rate means you might need to revisit onboarding or offer more hands-on support to guide users through setup and initial engagement.
7. Conversion Rate
What it is: Conversion rate measures the percentage of leads who become paying customers.
Why it matters: Conversion rate is a direct reflection of the effectiveness of your campaigns, website, and sales funnel. If conversions are low, it may be time to evaluate your messaging, optimise landing pages, or review sales processes. Regularly monitoring this metric is key to driving revenue growth and improving your B2B SaaS marketing strategy.
8. Lead Velocity Rate (LVR)
What it is: LVR tracks the growth of qualified leads month-over-month.
Why it matters: A strong LVR means you’re filling the pipeline with quality leads, setting the stage for future revenue. It’s an essential metric for forecasting growth and planning sales and marketing budgets. Since LVR looks at how quickly leads are growing, it can also signal how well your top-of-funnel strategies are working and guide adjustments to keep momentum.
9. Engagement Metrics (such as Product Usage and Feature Adoption)
What it is: Engagement metrics include tracking how often users log in, which features they use, and how much time they spend with your product.
Why it matters: Regular engagement is one of the best indicators of customer satisfaction and long-term retention. High engagement shows that users find value in your product and are making it a part of their routine. This helps you spot opportunities for upsells, encourage customer advocates, and refine your B2B SaaS marketing strategy based on what users actually care about.
10. Pipeline Velocity
What it is: Pipeline velocity measures the speed at which deals move through the sales pipeline, from lead to close.
Why it matters: The faster deals move, the healthier your sales pipeline. Tracking pipeline velocity helps identify bottlenecks in the process and can signal areas where additional support, content, or engagement might be needed to keep deals moving forward. It’s a crucial metric for optimizing sales and marketing alignment.
Putting Metrics at the Core of Your B2B SaaS Marketing Strategy
Tracking these metrics is about more than just numbers—it’s about understanding what drives growth, engagement, and customer loyalty. In the fast-paced world of B2B SaaS, these insights keep you agile and focused on what matters most. Regularly reviewing these metrics ensures that your marketing strategies are informed by data, helping you to prioritize the right areas, reduce churn, and maximize revenue.
Ultimately, the most successful B2B SaaS marketing strategy is one that’s both customer-centric and metrics-driven. With these key metrics, you’ll have a clear view of your performance and a solid foundation to build stronger relationships, enhance product value, and drive growth.
As a marketing consultant with over 20 years of global experience in B2B SaaS, I focus on helping Media, Tech, and eCommerce companies navigate their journey from start-up to scale-up. If you’re interested in refining your marketing strategy or just want to connect and share ideas, feel free to get in touch! And I'd love for you to connect with me on LinkedIn.
