15 B2B SaaS Marketing Metrics to Track in 2025

Data-driven decisions are no longer an option for SaaS companies. The industry is currently growing at a 13.7% CAGR and is expected to become USD 942.96 billion-worth by 2032. 

So, what if you’re already measuring some of the crucial metrics?

Our professional suggestion is to keep an eye on some industry benchmarks and compare your performance periodically against them. This way, you can identify areas where your business is lagging behind and make necessary changes to stay competitive in the market.

IWe've further collected the. top 10+ most important metrics for SaaS companies broken into 5 groups:

• Acquisition Metrics
• Platform Engagement Metrics
• Retention Metrics
• Growth Metrics
• Revenue and Economic Metrics

1. Acquisition Metrics

Let’s start with the golden standards. 

Acquisition metrics provide essential insights into the amounts you spend to acquire customers and how effective your sales and marketing efforts are.

Customer Acquisition Cost (CAC)

CAC shows how much you’re spending to gain one new customer. A high CAC rate can indicate inefficiencies in your sales funnel or expensive acquisition channels. 

💡Pro Tip: Try focusing on high-performing channels to optimize your CAC. The time to recover CAC should ideally be less than 12 months. If it’s longer, revisit your acquisition strategies or tpricing model.

Annual Contract Value (ACV) vs. CAC

ACV indicates the average annual revenue per customer, while CAC measures acquisition costs. The comparison of these two metrics provides insights into how long it takes to recover acquisition costs. Ideally, your ACV should outweigh CAC within 12 months.

💡Pro Tip: If your ACV is low relative to CAC, consider upselling or cross-selling additional features to existing customers to balance costs.

LTV/CAC Ratio

A healthy LTV/CAC ratio is typically 3:1, meaning your customer generates three times the revenue compared to their acquisition cost. Yet, it can vary depending on the industry and market requirements. Try tracking and analyzing recurring data patterns to find what works best for your company.

💡Pro Tip: Ratios below this suggest high acquisition costs or low customer retention. Ratios above 5:1 might mean you're under-investing in customer acquisition.

Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs)

The two no less important SaaS marketing metrics suggest the effectiveness of your marketing and sales efforts, showing who has shown enough interest to be considered potential customers.

Count SQLs: The number of MQLs that pass the SQL criteria becomes your total SQL count.

💡Example: If you have 500 MQLs and your sales team qualifies 200 of them after outreach, you have 200 SQLs. This means your conversion rate is 40%.

2. Platform Engagement Metrics

Tracking how users interact with product and website features helps measure the effectiveness of your marketing efforts and can also provide valuable insights for product development.

Let's start with a few key engagement metrics:

Daily Active Users (DAU) and Monthly Active Users (MAU)

As the names suggest, DAU and MAU measure the number of unique users who actively engage with your platform every day or month, respectively.

💡Example: social media platforms like LinkedIn or SaaS tools like Slack rely heavily on DAU because they need users to return daily. In contrast, a financial reporting SaaS platform may prioritize MAU since customers might only log in once or twice per month.

The DAU/MAU ratio, also known as the "stickiness ratio," measures how frequently users return to your product within a given month.

Industry Benchmarks & Best Practices

Healthy DAU/MAU benchmarks:

• The average standard varies between 10-20%.
• Social media apps can go above 50%.
• E-commerce websites have an average of 9.8%.
• SaaS products 13%, and B2B SaaS around 40%.

Recommended Reading: Understanding DAU/MAU by Statsig

How to Improve DAU/MAU?

• Personalized User Experience: Provide recommendations based on user behavior.
• In-App Notifications & Reminders: Encourage users to return through relevant alerts.
• Gamification & Rewards: Offer incentives for frequent usage.

Customer Engagement Score (CES)

Unlike DAU and MAU SaaS marketing metrics that show more general activity, customer engagement score measures user behavior specific to your business goals. CES is typically calculated by assigning weights to different user actions that indicate engagement, such as:

• Frequency of logins
• Feature adoption
• Time spent on the platform
• Number of support interactions
• Subscription renewal likelihood

Each of the factors influences the engagement score.

Why Does CES Matter?

• A dropping CES score can signal disengagement before a customer cancels their subscription.
• Makes customer segmentation easier by identifying highly engaged users who may be ready for an upgrade.

How to Calculate CES?

Since CES is custom to each SaaS company, there's no universal formula, but a common method is:

Where:

• X represents key engagement factors (e.g., logins, feature usage, support interactions).
• W represents the weight assigned to each factor based on importance.

💡Example: If your product's core feature usage is the strongest predictor of retention, you might assign it a higher weight than logins.

Industry Best Practices for CES

• Monitor Trends, Not Just Absolute Scores: Track CES changes over time rather than focusing on one-time values.
• Segment Your Users: Compare CES across different customer segments (e.g., enterprise vs. SMB) to refine engagement strategies.
• Combine CES With Other SaaS Marketing Metrics: Use CES alongside churn rates, Net Revenue Retention (NRR), and customer support data for deeper insights.
• Act on the Data: Use CES scores to trigger automated customer success actions, like targeted onboarding emails or personalized outreach for disengaged users.

3. Retention Metrics

What factors do you think contribute most to keeping your customers engaged and loyal over time, and how do you measure whether your efforts are truly driving long-term retention?

The answers can vary depending on your definition of success. For some companies, retention may mean simply keeping customers subscribed for as long as possible. Others may prioritize customer satisfaction or specific engagement metrics. The key here is to identify the metrics that align with your company's goals and track them consistently to measure retention accurately.

Here are some common retention metrics used by SaaS companies:

Customer Churn Rate

This is the percentage of customers who cancel their subscriptions over a given period. It shows the number of people directly dissatisfied with a given product or service, and it's often used as a primary retention metric.

💡Example: If you started the month with 1,000 customers and lost 50, your churn rate would be 5%.

For B2B SaaS companies, the churn can be higher (5-7%), but keeping it below 3% is optimal.

How to Reduce Churn?

• Conduct customer exit surveys and analyze cancellation reasons. Sometimes, people can leave for reasons that could be easily resolved, like a misunderstanding or lack of awareness about certain features.
• A smooth onboarding experience helps users realize value faster, reducing early churn. Create a knowledge base with help articles or video instructions to guide your new customers.
• Use AI-driven support tools or customer success teams to engage with users before they consider canceling.
• Offer incentives like discounts, loyalty programs, or contract extensions to encourage renewals.
• Talk to your users before they start thinking about leaving. Most SaaS companies spend time building nice-to-have features while ignoring their users’ actual needs. Collect feedback, prioritize user requests, and add them to your product roadmap to prevent churn

Revenue Churn Rate

Compared to the customer churn rate, the revenue churn rate shows the percentage of lost revenue due to cancellations or downgrades. It's more relevant analytical data for SaaS businesses with tiered pricing as it reflects the actual impact on your bottom line.

Best Practices for Revenue Churn Rate

• Aim for negative revenue churn, suggesting that upsells/cross-sells bring more revenue than losses.
• If negative doesn't work, keep the revenue churn of <1%.
• Focus your retention efforts on customers who bring the most revenue.
• Create unique offers, encouraging customers to upgrade or purchase add-ons.
• Provide time-limited discounts on annual subscriptions to keep customers at a higher-tier plan.

Net Revenue Retention (NRR)

This retention metric measures the percentage of revenue retained after accounting for both churn and expansion. It's a comprehensive approach to tracking changes in customer spending across different segments, factoring in upgrades, renewals, downgrades, and cancellations.

💡If the NRR appears over 100%, then you are driving revenue growth with the existing customers even without acquiring new ones.

How to Improve NRR?

• Introduce Tiered Pricing: Give customers clear upgrade paths.
• Increase Expansion Revenue: Offer feature add-ons, premium support, or additional seats.
• Improve Retention: Strong retention automatically improves NRR.

4. Growth Metrics

Knowing if a business has the potential to scale, attract investors, and maintain financial health is crucial for any entrepreneur. For SaaS companies, it's not only about acquiring new customers but ensuring they are upgrading, expanding their usage, and staying engaged. If you neglect to expand your market share, your competitors will outgrow you. Unlike other industries where businesses can grow at a steady pace, SaaS companies should opt for rapid expansion.

SaaS growth metrics help businesses gain insight into critical data like the annual and monthly recurring revenues, customer lifetime value (CLV), payback period, etc. Knowing how each of these metrics is performing can help you make better decisions in your growth strategy. Moreover, these are the numbers potential investors analyze when evaluating a SaaS business. Even if your company doesn’t bring revenue yet, but has exponential growth, you can opt for a strong funding round.

Annual Recurring Revenue (ARR)

Showing the projected yearly revenue generated from subscription-based services ARR is a key indicator of financial stability and long-term revenue predictability. Comparing your year-over-year data shows whether the current growth strategy works or not.

Pro Tips for ARR

• To scale ARR, focus on consistent acquisition, upselling, and reducing churn.
• Aim for an ARR growth rate of at least 40% year-over-year.
• Offer incentives for customers who commit to yearly plans.
• Upsell additional features, premium tiers, or enterprise solutions.

Monthly Recurring Revenue (MRR)

MRR projects the total revenue generated monthly from subscription-based services. Unlike ARR, MRR gives more granular and real-time insights into a SaaS company's financial state and customer retention success.

Calculating MRR is crucial as it:

• Helps businesses track recurring revenue streams and identify fluctuations.
• Guides business expansion decisions.
• Indicates whether acquisition and retention strategies are effective.

💡Example Calculation

Let’s break this down with different customer scenarios:

• 50 subscribers paying $100 per month:
  50×100=5,000
• 80 subscribers on annual contracts paying $900/year:
  1.Convert to monthly revenue:
  ‍900÷12=75
  2.Then calculate MRR:
  ‍80×75=6,000
• 30 subscribers on a $100/month plan + 40 subscribers paying $600/year:
  1. Convert annual subscribers to monthly revenue:
  ‍600÷12=50
  2. Then calculate MRR:
  (30×100)+(40×50)=3,000+2,000=5,000

Industry Standards for MRR

• Top SaaS companies target MRR growth of 5-15% month-over-month.
• MRR is more useful for short-term decision-making compared to ARR.
• To scale MRR, focus on customer acquisition, expansion revenue, and retention.

Achieving a steady MRR requires more than just tracking the right metrics. You’ll need data-driven performance monitoring strategies and professional guidance to ensure your growth is steady. If you're looking to maximize MRR efficiently, WeScale’s tailored approach can help you achieve the desired results. From optimizing paid acquisition channels to increasing conversion rates, our years of expertise can scale your profits while maintaining a healthy revenue stream.