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Of course, any good marketing plan will include how it will be measured. Here are the key metrics that you should look to when gauging the marketing success of your SaaS.

MQL velocity

MQL velocity has been called “the most important metric in SaaS.” This is because though sales and pipeline forecasts are useful, they are lagging indicators hinging on both correct opportunity probability assignments and close dates. However, by looking at MQL velocity compared to lead commits, you can see forward-looking insights beyond a traditional pipeline report.

 

HubSpot

More SaaS + Software Stats

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Improve Your Pricing Schedule And Turn More Profit

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

More Growth Strategy Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

More than 1/2 of SAAS companies increased their spending on customer retention last year

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18