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Top 5 Marketing Metrics to track for your SaaS Business

If you’re not sure which SaaS metrics give you a holistic picture of your marketing efforts, check out these top 5 five marketing metrics to track for your SaaS business-

Heba Rahman
Top 5 Marketing Metrics to Track for Your SaaS

One of the challenges of successful marketing is knowing which campaigns and efforts are working for you and which ones are not. Should you spend more money on marketing? Should you spend less? Are you getting the right traffic? Generating enough leads? Ideally, all these questions should be answered by the marketing metrics that you track for your SaaS business. If you’re not sure which marketing metrics will help you get a holistic picture of your marketing efforts, you’ve come to the right place. These five marketing metrics are the only SaaS metrics you need to track for the growth of your business- 

1. CAC:LTV ratio

The Customer Acquisition Cost or CAC is the cost of acquiring a new customer for your business and the value that they bring to the company, and the Customer Lifetime Value or CLV (also known as Lifetime Value or LTV) is a measure of the average amount of money that a user spends on your product or service over time

The CAC to CLV ratio is the most important SaaS metric in  tracking and analyzing your company’s marketing. With the help of this, you can keep a check on your sales and marketing campaigns. For a healthy and sustainable business the CAC: CLV ratio looks close to 1:3. 

Lower ratios (1:1, for example)  mean that you’re spending too much on campaigns that are not bringing enough valuable customers, and higher ratios (1:5, for example) mean that you can afford to spend more and probably acquire more new business.

2. Unique visitors

Unique visitors is the count of users that visit your website in any given time period. This metric can be measured using Google Analytics, which also lets you keep track of the source/medium of each new visitor. Identifying the channels which bring the most new visitors is a great way to recognize the marketing channels that are working for you and the ones which need more attention. A steady increase in unique visitors means that your marketing efforts are paying off and your content is resonating with the right audience. 

3. Traffic conversion rate

The traffic conversion rate is a measure of the amount of traffic on your site that gets converted into tangible business for your company. A conversion, then, stands for any action that you want your users to take. This could include signing up with an account, making a purchase, etc. The conversion action depends on the service that your company provides, and you could have multiple conversion goals. Each of these would have its own conversion rates. A good conversion rate means that you are attracting the right kind of traffic to your website and your marketing team is targeting the right audience. On the other hand, low conversion rates with high traffic mean that your marketing efforts are wasted on the wrong audience. 

How to calculate Traffic Conversion Rate? 

4. Lead velocity rate 

Lead velocity rate or the LVR is a measure of the growth in the amount of leads your business generates on a monthly basis. Since generating leads is one of the primary functions of your marketing teams, the lead velocity rate helps keep track of the pipeline efficiency and in-funnel efforts of your marketing. A good lead velocity rate also reflects your company’s potential for long-term growth. When you have the correct estimate for projected growth in qualified leads, you can plan to scale accordingly. 

How to calculate lead velocity rate:

5. Lead to customer rate 

The final marketing metric that you need to track is the Lead to Customer rate, also known as the Lead conversion rate. This marketing metric is a measure of the number of qualified leads that get converted into customers that generate revenue for your business. The lead to customer rate is a good reflector of the persona that your marketing and lead-generating efforts are targeting. It will show you whether you’re generating enough leads that are sakes-ready. 

How to calculate Lead to customer rate:

That is a wrap on the top marketing metrics to track for your SaaS business. With these metrics the sales marketing departments of your business can evaluate and optimize their campaigns and strategies. We hope this was helpful! For further information on SaaS metrics, read Top 10 SaaS Metrics to track for your SaaS Business

Also Read: 8 SaaS Businesses that Nailed Social Media Marketing

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