The 5 Sales Metrics All Saas Companies Should Be Tracking

Why You Should Be Measuring Your SaaS Metrics: The 5 Sales Metrics All Saas Companies Should Be Tracking

Sales and marketing are two pillars that drive the success of any business. While sales helps in bringing new customers on board, marketers help them understand the market potential and tailor their offerings accordingly. Luckily, there has been marked progress in recent years by way of software that makes measuring performance easier than ever before. But it’s still not easy—especially for SaaS companies that don’t have a ton of staff members to dedicate to tracking metrics and monitoring software. So, why should you be measuring your SaaS metrics? Well, measuring your performance will have many positive outcomes: – Read on to learn more about the benefits of measuring your SaaS metrics as well as what metrics you should be keeping tabs on.

Knowing Which Marketing Strategies Are Paying Off

If you’re measuring the success of your marketing efforts, you’ll be able to easily assess which strategies are working. Look at how many leads you’re getting from paid search compared to organic, for example. This will allow you to easily determine how much you can budget for each. If one channel is producing five times as many leads as another, you may want to increase your spend on it. Metrics such as revenue per lead (RPPL) can prove very useful in this regard. RPPL is a metric that shows you how much revenue you earn from each lead that comes in. This can help you determine which channels are bringing in the best leads.

Knowing Which Sales Strategies Are Paying Off

Some SaaS companies outsource their sales efforts completely. Others rely on in-house sales staff. But whether you have in-house sales representatives or not, it’s important to track your sales metrics. In fact, sales metrics are perhaps even more important to track than marketing metrics. After all, it’s much easier to change your marketing strategy than it is to change your sales strategy. You should be keeping tabs on which sales strategies are working best for you. Look at how many leads come from in-person meetings, for example, and how many come from phone calls. You can also track your sales cycle to determine how quickly customers are purchasing from you. If your sales cycle is longer than you’d like, you may want to adjust your strategy to shorten it. If you’re using a sales strategy which involves lead generation activity from a 3rd party brand, make sure you keep tabs on the conversion rates separately from in house methods as this will act as a good benchmark for how each campaign should be performing. See our lead generation service here.

Knowing How Much You Can Spend On Marketing

Measuring your marketing efforts allows you to determine how much you can spend on marketing. It’s important to track your marketing budget because without it you could end up wasting a lot of money. If you’re not keeping tabs on your marketing budget, you could end up burning a hole in your pocket. Tracking your marketing budget also allows you to determine how much you can spend on each marketing channel. If you’re spending 10% of your total marketing budget on paid search and seeing excellent results, you could increase that percentage. By keeping tabs on your marketing metrics, you can determine whether or not it’s worth increasing your marketing budget. If you’re getting a great return on your current budget, there’s no reason to increase it.

Knowing How Much Your Customer Is Willing To Spend

Knowing how much your average customer is willing to spend allows you to tailor your offerings accordingly. If you’re tracking your sales metrics and you notice that most customers are purchasing the $99 plan, for example, you can adjust your offerings accordingly. This can help you increase the overall amount of revenue your company is bringing in. It’s important to keep tabs on how much your average customer is willing to spend in order to stay competitive in your market. If you notice that your competitors are selling similar offerings for less money, you can lower your prices accordingly.

Knowing Which Channels Work Best For You

Finally, measuring your performance will allow you to track what marketing channels are working best for you. You can use this information to focus your efforts in the future and make sure you’re not wasting time and money on channels that aren’t producing results. If you notice that the majority of your customers are finding you through in-person meetings, for example, you can focus more of your time on scheduling those events. You can also use your performance metrics to see which channels you should avoid. If you notice that you’re wasting time and money on paid search, for example, you should probably stop spending money on it.


Now that you know why you should be measuring your SaaS metrics, let’s look at which metrics you should be tracking. For the most part, these are the same metrics that you would track if you were running a traditional business. Remember, successful SaaS companies are the ones that are able to track their progress and make adjustments where necessary.

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