B2B SAAS metrics: guide to measure performance

With the SAAS B2B metrics, you can evaluate the performance of a software as a service (SOBTWARE ASS) and be able to make decisions about it.

These metrics provide valuable information about growth, profitability and customer satisfaction, allowing companies to measure and optimize their market performance.

What are the most important B2B SAAS metrics and how are they calculated? Here we explain it to you.

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Why are SAAS B2B metrics important?

Before seeing each of the metrics, let's make clear the reasons why you should be interested in them.

In principle, they provide objective and measurable information about the company's performance. Based on this data, decisions based on facts and not in assumptions can be made.

On the other hand, SAAS B2B metrics are useful for tracking and evaluating growth in different areas , such as the number of customers, retention and monthly recurring income. Also, they help identify areas in which profitability and efficiency can be optimized.

Finally, since many B2B SAAS metrics are directly related to customer satisfaction, when monitoring them, it can be known in what should be improved in order to guarantee customer's satisfaction and loyalty .

B2B SAAS Metrics

With the metrics that we present below, an integral vision of your business:

Churn Rate (cancellation rate)

The cancellation rate is a fundamental SAAS B2B metric, since it indicates the number of customers who cancel their subscription or stop using the product in a given period of time .

A high Churn Rate can be a sign that there are problems in customer retention and product satisfaction.

Churn Rate Formula
Churn Rate = Clients who canceled the service during the month/customers at the beginning of month x 100

Customer acquisition cost (CAC)

The customer acquisition cost (CAC) is a metric that calculates how much it costs to acquire a new client . It includes all marketing and sales expenses divided by the number of customers acquired over a given period.

The result is essential to evaluate the effectiveness of customer acquisition strategies and determine long -term profitability.

Acquisition cost formula
CAC = (Marketing Investments + Investments Sales) ÷ Customers won
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Monthly recurring income

Monthly recurring income represents the total amount of income generated by customers in a month determined by the payment of the subscription.

This metric offers a clear vision of financial stability and sustainable growth of a SAAS B2B company.

MONTHLY RATINE FORMULA
MRR = number of active customers x average income per customer

Average user income (ARPU)

The average income per user (ARPU) serves to calculate the average income that a company generates by each client . This data is useful to evaluate the economic value of each client and identify opportunities for improvement in the monetization of those who are already users.

ARPU formula
ARPU = Income / number of users

Customer life (CLV)

The customer's life value (CLV) estimates the total income that a company can generate throughout the relationship with a customer . Evaluating the CLV allows to make strategic decisions in relation to the allocation of resources and the acquisition of new customers.

Formula Life Time Value
CLV = Average purchase value x purchase frequency rate x average customer life

Conversion rate

The conversion rate is used to measure the percentage of visitors or users who perform a desired action in relation to the total number of visitors or users who interact with the website, application or marketing campaign.

Conversion rate formula
Conversion rate = number of conversions / total number of users x 100

Retention rate

The retention rate is a metric of SAAS B2B that measures the capacity of a company to retain its customers over time . A high retention rate indicates a strong loyalty of the client and a bass Churn Rate, which is essential for sustainable growth and long -term profitability.

Retention rate formula
Retention rate = [customers at the end-new clients]/clients at the beginning] x 100

CAC Payback

The CAC Payback calculates the time it takes for a company to recover the cost of acquiring customers through the income generated by those customers . A rapid payback is indicative of greater efficiency in investment in customer acquisition and greater profitability.

CAC Payback formula
CAC PAYback = CAC ÷ Customer contribution margin

Lead qualified by marketing (MQL)

The Lead qualified by marketing refers to potential customers who have shown interest high enough to be considered as sale opportunities by the marketing equipment. Therefore, it is an important metric to evaluate the quality and effectiveness of lead generation strategies and how aligned are marketing and sales.

B2B SAAS Metrics

NPS score (Net Promoter Score)

The NPS score evaluates the loyalty and customer satisfaction by question "on a scale from 0 to 10, how likely you recommend our product to a friend or colleague?" . The NPS provides a quantitative measure of satisfaction and allows identifying promoters and detractors of the SAAS.

Formula for calculating the NPS
NPS = promoters (%) - detractors (%)

The promoters are the users who respond with a 9 or 10, while the detractors who respond with 6 or less.

Unique visitors

Unique visitors is the total number of unique users who visit a website or use an application in a certain period of time . It is an important metric to evaluate the visibility and scope of a company of SAAS B2B and its ability to attract qualified traffic.

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