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8 SaaS KPIs Every Entrepreneur Should Know


Here is a list of 8 SaaS KPIs Every Entrepreneur Should Know. Lets take a look at them one by one


1 CAC

Number 1 on the list of SaaS KPIs Every Entrepreneur Should Know is CAC

Customer acquisition cost is the cost associated with convincing a consumer to buy your product or service, including research, marketing, and advertising costs. 



2 Churn Rate

Number 2 on the list of SaaS KPIs Every Entrepreneur Should Know is Churn Rate

Churn rate can define in many ways such as the total number of lost customers within a specific time frame, the percentage of lost customer within a specific time frame, the recurring business value that is lost, the percentage of the recurring business value that is lost



3 Customer Lifetime Value

Number 3 on the list of SaaS KPIs Every Entrepreneur Should Know is Customer Lifetime Value

In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer.



4 CAC Payback Period

Number 4 on the list of SaaS KPIs Every Entrepreneur Should Know is CAC Payback Period

The SaaS Metric CAC Payback Period is the number of months it takes to earn back the money invested in acquiring customers. It shows your break even point. This metric often goes by Time to Recover CAC or Months to Recover CAC.

5 CAC to LTV Ration

Number 5 on the list of SaaS KPIs Every Entrepreneur Should Know is CAC to LTV Ration

CLV-to-CAC shows the lifetime value of your customers and the total amount you spend to acquire them -- in a single metric. This metric displays the health of your marketing program, so you can invest in programs that are working well or change campaigns that aren't.

6 Net MRR Growth Rate

Number 6 on the list of SaaS KPIs Every Entrepreneur Should Know is Net MRR Growth Rate

Net Monthly Recurring Revenue (MRR) Growth Rate measures the month over month percentage increase in net MRR. It’s one of the most common and important SaaS metrics.
Since MRR changes as new revenue is added and customers churn (cancel) and as accounts expand or contract, the growth rate shows the net variation of those factors from month-to-month. The net growth rate provides a solid indicator of how quickly your SaaS company is growing

7 Lead Velocity Rate

Number 7 on the list of SaaS KPIs Every Entrepreneur Should Know is Lead Velocity Rate

The Lead Velocity Rate is the growth percentage of qualified leads month over month. It measures your pipeline development. That is, how many (quality) potential customers you’re currently working on converting to actual customers.

8 Leads To Customer Rate

Number 8 on the list of SaaS KPIs Every Entrepreneur Should Know is Leads To Customer Rate

This metric shows exactly how well you're generating sales-ready leads -- and improving over time. It outlines, on average, how many leads turn into paying customers. In other words, it shows whether your sales process and lead-nurturing methods are working or not.

Conclusion

So that's it on the 8 SaaS KPIs Every Entrepreneur Should Know

Which KPIs do you use at your company ?



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