9 Top SaaS Marketing Metrics to Track in 2024

Running SaaS marketing without tracking key metrics is like driving a car without a dashboard—you have no idea if you're speeding ahead or veering off course. While there are many SaaS marketing metrics to consider, only a few truly drive growth.

At TripleDart, we’ve helped scale SaaS businesses by focusing on the most impactful metrics. In this post, we’ll highlight the top nine SaaS marketing metrics we track, explain why they are essential for growth, and share the tools we use to ensure consistent results.

Why Tracking SaaS Marketing Metrics Is Important

Tracking SaaS marketing metrics provides clarity on performance and helps make data-driven decisions. Here are some reasons you should track them.

1. Optimize customer acquisition efforts

Effective tracking of customer acquisition efforts helps SaaS companies evaluate the success of their marketing campaigns. SaaS Marketing metrics like Customer Acquisition Cost (CAC) and Lifetime Value (LTV) offer critical insights into which channels bring in the most paying customers. Optimizing these efforts results in smarter spending and more sustainable growth.

2. Improve financial forecasting

Accurate financial forecasting relies on consistent monitoring of revenue and customer data. SaaS marketing metrics such as Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) allow businesses to predict future revenue streams and plan for long-term financial stability. This ensures better cash flow management and helps set realistic financial objectives.

3. Boost conversion rates

Monitoring conversion metrics uncovers obstacles in the sales funnel, enabling the sales team to address gaps in the customer journey. Key marketing metrics like Conversion Rate and Lead-to-Customer Ratio help identify areas where optimizations can drive more leads to convert into paying customers. Focused adjustments to landing pages, calls to action, and nurturing tactics will improve overall conversion efficiency.

4. Enhance product development

Tracking user behavior and engagement sheds light on product performance. SaaS marketing metrics such as Product Engagement and User Retention Rate highlight areas of the product that resonate with customers, as well as those that need improvement. This data empowers product teams to prioritize features and updates to enhance customer satisfaction and retention.

5. Identify growth opportunities

Evaluating SaaS marketing metrics like Customer Lifetime Value (CLTV), Customer Churn Rate, and Net Promoter Score (NPS) helps pinpoint areas for business expansion. These insights reveal opportunities for upselling, cross-selling, and entering new markets, enabling SaaS companies to scale strategically while minimizing risks.

Key SaaS Marketing Metrics to Track in 2024

1.Customer Acquisition Cost (CAC)

Definition
‍
CAC refers to the total expenses incurred to attract a new customer, including marketing, sales, and operational costs.

Calculation formula
‍
CAC = (Total Marketing + Sales Expenses) / Number of New Customers Acquired

Importance of tracking CAC

CAC is crucial for measuring the efficiency of your acquisition efforts. A high CAC can signal inefficiencies in your SaaS marketing strategy, while a lower CAC helps ensure you’re spending wisely to grow your customer base without harming profitability.

Tools to track CAC

• HubSpot CRM: Helps track marketing and sales spending about customer acquisition
• Salesforce: Offers a comprehensive dashboard for monitoring acquisition costs across campaigns
• Google Analytics: Tracks marketing channels and their impact on customer acquisition​

Strategies for reducing CAC

• Focus your budget on the most effective acquisition channels
• Encourage existing customers to refer new ones, reducing acquisition costs
• Streamline the process to convert leads more efficiently​

2.Customer Lifetime Value (CLTV)

Definition
‍
Customer Lifetime Value (CLTV) is the total revenue a business can expect from customers over their relationship with the SaaS company.

Calculation formula
‍
Customer Lifetime Value (CLTV) = (Average Revenue per User x Gross Margin x Customer Lifespan)

Importance of tracking CLTV
‍
CLTV is essential for understanding long-term customer profitability. By comparing it with CAC, you can assess whether your marketing efforts deliver value​.

Tools to track CLTV

• Baremetrics: Monitors CLTV and churn rates in real-time for subscription-based businesses
• ChartMogul: Tracks average revenue and CLTV data to provide insights into customer retention
• Stripe: This can be integrated to track recurring revenue and customer behavior​

Strategies for increasing CLTV

• Offer additional products or features to increase customer value
• Provide proactive support and personalized customer engagement to increase customer loyalty
• Provide incentives, better onboarding, or loyalty programs​

3.Customer Churn Rate

Definition
‍
Customer Churn Rate measures the percentage of customers who stop using your service over a period.

Calculation formula
‍
Customer Churn Rate = (Number of Customers Lost / Total Number of Customers at the Start of the Period) x 100

Importance of tracking churn rate

A low churn rate is essential for growth. Reducing churn can often be more cost-effective than acquiring new customers, making it a critical metric for any SaaS business​.

Tools to track churn rate

• ProfitWell: Offers churn analysis and insights into customer behavior to reduce churn
• Zoho Analytics: Tracks customer lifecycle data, including churn metrics
• Pendo: Monitors product engagement to predict churn risk

Strategies for reducing churn

• Ensure customers experience value quickly
• Regularly solicit feedback and address issues before they escalate
• Address potential issues before customers churn​

4.Net Promoter Score (NPS)

Definition
‍
Net Promoter Score (NPS) measures customer loyalty and satisfaction by asking how likely customers are to recommend your product to others.

Calculation formula
‍
Net Promoter Score (NPS) = % of Promoters (Score 9-10) – % of Detractors (Score 0-6)

Importance of tracking NPS
‍
NPS is directly tied to word-of-mouth growth and brand reputation. A higher NPS signals that customers are satisfied and are likely to refer your product to others, helping to lower CAC​.

Tools to track NPS

• SurveyMonkey: Simple surveys that measure NPS
• Wootric: Automates the collection of NPS data from customers
• Qualtrics: Helps you understand customer feedback and track NPS​

Strategies for improving NPS

• Resolve issues raised by detractors to improve overall satisfaction
• Encourage highly satisfied customers to spread the word about your product
• Use NPS data to drive product and service enhancements​

5.Monthly Recurring Revenue (MRR)

Definition
‍
‍Monthly Recurring Revenue (MRR) represents the total predictable revenue a business generates monthly from active subscriptions. While similar to Annual Recurring Revenue (ARR), the key difference is that MRR tracks monthly earnings, whereas ARR focuses on yearly revenue.

Calculation formula

Monthly Recurring Revenue (MRR) = Number of Active Subscribers x Average Revenue per Account (ARPA)

Importance of tracking MRR

MRR is essential for assessing the health and growth of subscription-based businesses. It also provides insight into the sustainability of your revenue streams and aids in financial forecasting​.

Tools to track MRR

• Chargebee: Tracks MRR and other recurring revenue metrics
• Stripe: Provides real-time revenue insights, including MRR
• Recurly: Designed specifically for subscription businesses, offering comprehensive MRR tracking​

Strategies for increasing MRR

• Offer premium pricing options to increase revenue from high-value customers
• Keep existing customers to increase recurring revenue
• Encourage customers to upgrade their current plans for additional features or benefits​

6.Lead-to-customer conversion rate

Definition
‍
Lead-to-Customer Conversion Rate measures the percentage of leads that convert into paying customers.

Calculation formula
‍
Lead-to-Customer Conversion Rate = (Number of New Customers / Number of Leads) x 100

Importance of tracking conversion rate

A high conversion rate reflects effective sales and marketing efforts, while a low rate suggests inefficiencies in the sales funnel​.

Tools to track conversion rate

• HubSpot: Tracks the entire lead lifecycle from first touch to conversion
• Marketo: Provides comprehensive analytics on lead generation and conversions
• Google Analytics: Monitors conversions and tracks lead sources​

Strategies for improving conversion rate

• Improve calls-to-action (CTAs) and streamline forms to boost conversions
• Tailor content and outreach to the specific needs of prospects
• Use targeted campaigns to move leads through the funnel faster​

7.Website traffic

Definition

Website traffic refers to the number of visitors landing on your website, a key indicator of brand visibility and digital marketing performance.

Key metrics to track

• Unique Visitors
• Pageviews
• Bounce Rate

Importance of tracking website traffic
‍
Website traffic is a leading indicator of how well your content and campaigns attract potential customers. A steady increase in traffic often correlates with stronger brand awareness and higher chances of conversions​.

Tools to track website traffic

• Google Analytics: Tracks user behavior, sessions, bounce rates, and page views
• SEMrush: Monitors organic traffic, paid search, and competitors’ website performance
• Ahrefs: Tracks SEO-related traffic and provides insight into organic growth​

Strategies for increasing website traffic

• Implement strategies to improve your search engine ranking
• Regularly publish blog posts and resources to attract visitors
• Use targeted ads to drive traffic from platforms like Google Ads or social media​

8.Marketing Qualified Leads (MQLs)

Definition
‍
Marketing Quality Leads (MQLs) are leads identified as more likely to become customers based on engagement with your marketing content.

Key metrics to track

• Number of MQLs Generated
• Marketing Qualified Lead (MQL)-to-Sales Qualified Lead (SQL) Conversion Rate

Importance of tracking MQLs
‍
Tracking MQLs helps align the marketing and sales team, ensuring quality leads are passed down the SaaS marketing funnel. This can improve conversion rates and reduce wasted marketing spend​.

Tools to track MQLs

• HubSpot: Manages lead scoring and tracks MQL progress in the sales funnel.
• Pardot: A B2B marketing automation platform that scores leads based on engagement
• Marketo: Tracks MQLs and automates lead nurturing​

Strategies for generating more MQLs

• Better qualification of leads increases the likelihood of conversions
• Offer downloadable resources like white papers or case studies to attract leads
• Use segmented email marketing and retargeting ads to generate sales qualified leads

9.Social media engagement

Key metrics to track

• Followers
• Likes, shares, comments
• Customer engagement rate (total interactions divided by total reach)

Importance of tracking social media engagement
‍
Tracking social media engagement is essential for understanding how well your content resonates with your audience. High engagement can lead to greater brand awareness, increased loyalty, and even conversions. It also offers insight into which platforms and types of content are most effective for your audience​.

Tools to track social media engagement

• Hootsuite: A comprehensive tool for scheduling posts and monitoring engagement metrics across multiple platforms
• Sprout Social: Provides detailed analytics on engagement, audience demographics, and content performance
• Buffer: Helps track engagement metrics like likes, comments, shares, and follower growth while allowing post scheduling
• Google Analytics: While primarily used for website tracking, it also provides insights into social media traffic and engagement

Strategies for increasing social media engagement

• Maintain a regular posting schedule to keep your audience engaged
• Use polls, quizzes, or Q&A sessions to encourage participation
• Engage with your audience by replying to comments and messages to build community and trust​.

FAQs

How often should I track these SaaS metrics?

Ideally, these marketing metrics should be tracked weekly or monthly. Consistent monitoring allows you to quickly identify trends, adjust, and improve performance over time​.

What’s the most important metric to focus on first?

The most important metric depends on your specific goals, but generally, Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV) are critical starting points. These metrics help you understand whether your customer acquisition efforts are sustainable and profitable​.

Can these metrics be automated?

Yes, most of these metrics can be automated with tools like HubSpot, Google Analytics, and marketing automation platforms like Marketo and Pardot. Automating data collection ensures you have real-time insights without manual tracking​.

How do I improve multiple metrics at once?

Focusing on improving customer experience can have a positive impact across several metrics, including reducing churn, increasing CLTV, and boosting NPS. Better onboarding, proactive support, and personalized customer interactions can help improve multiple areas simultaneously​.

Why TripleDart Is your Go-To SaaS Marketing Agency for Optimizing Key Metrics in 2024

TripleDart specializes in data-driven SaaS marketing strategies that help companies optimize key metrics for sustainable growth. We use industry-leading tools and techniques to track and improve critical metrics like CAC, CLTV, MRR, etc. 

Our approach is tailored to each client, ensuring that your marketing efforts drive real results, whether you're looking to increase conversions, lower acquisition costs, or boost customer retention. With our SaaS SEO agency expertise, you can be confident that your SaaS business is set up for success in 2024.