21 SaaS Marketing Metrics You Must Track
Marketing metrics are values that SaaS marketers measure to assess their strategies and campaigns. There are tons of different marketing metrics that different businesses in different industries use.
Sometimes it can be hard to decide which ones to measure for yourself, or sometimes you don't have the resources to look at everything at once.
So, here is a guide with 21 top SaaS marketing metrics that will help you figure out your measurements for marketing.
1. Marketing Qualified Leads
Lead generation determines a business's ability to make profit in the future, therefore it is a very significant sign of marketing success.
Most marketers closely track lead generation because it is a highlight of the transition moment when a customer decides to make a purchase and stops being a prospect.
This purchase is what generates revenue which is the most crucial step in marketing.
Leads can be qualified into two categories as they move further down the marketing funnel based on their expected outcome.
The first one is marketing qualified leads (MQLs) which refer to prospects that show signs of potential to make a purchase. It can be understood through the interested behavior of the (potential) customer, such as content downloads or frequent website visits. These are usually customer who are at the top of the marketing funnel.
In fact, a recent trend that we are seeing is, around 80% of revenue comes from 20% of the leads. It's very important that you keep track of your customers' journey, understand which campaign brought them, and what led them to convert.
You can use HockeyStack to understand your customer's journey from acquisition to product engagement with no-code!
2. Sales Accepted Leads
Sales accepted leads (SALs) are closer to making a purchase than MQLs. In other words, they are further down the marketing funnel.
Marketers can understand these types of leads, again, by the customer's very specific behavior.
Tracking these two types of qualified leads (SALs and MQLs) is very important because most of the time the best marketing campaigns don't have a super-high level of leads but high levels of qualified leads.
3. Feed Subscriber Growth Rate
A feed subscriber (or just a subscriber) is someone who has shown interest in your content and has come back multiple times for more —and still keeps coming.
Marketers measure the percentage growth of their subscribers over certain periods of time and procure feedback about content or campaign quality.
This metric has become more and more important over the years with the increase of businesses creating website blogs or YouTube channels. So, if you have one, it could be really beneficial to measure your subscriber growth rate.
4. Brand Awareness
It is important to keep your eyes open to who says what about your business. You need to be aware of how, when, where, and how often you appear on which forms of media. You need to know every time your name is mentioned.
This can be a hard thing to track with today's complicated online world. You can use the help of Google Alerts to keep a track of your web mentions and referrals.
You should also track social media mentions and posts containing your brand name. Some software services can be helpful simplifying the process for you.
Another source to be tracked is SEO. For example, it could be what type of search brings customers to your brand, or which backlinks are driving content to your website.
5. Return on Marketing Investment (RoMI)
Return on Marketing Investment (RoMI) measures the revenue obtained from a certain marketing campaign compared to the cost of the campaign.
This metric ultimately helps businesses get feedback on their marketing campaigns and understand which tactics, channels, or strategies work the best.
RoMI seems very straightforward: less money spend + more money gained = good marketing campaign. Well, it isn't that simple. Calculating the ROI of a campaign can be really difficult —especially when there are multiple marketing campaigns and strategies on action simultaneously.
Nevertheless RoMI is still an extremely important metric because it guides businesses while doing budget arrangements and helps them allocate their money in the most beneficial way.
6. Customer Lifetime Value (CLV)
Customer lifetime value (CLV) is the total revenue that can be expected from a single customer during the lifespan of their relationship with your business.
Measuring this helps with determining which customers are the most valuable ones and worth more of your attention.
7. Customer Acquisition Cost (CAC)
Customer acquisition cost (CAC) or marketing spend per customer is the amount of money you spend to acquire a single customer. This includes any type of expense you have including employee salaries and overhead.
With calculating your customer acquisition cost you will be able to tell how effective your marketing strategies are. If you spend a lot of money to acquire customers, your marketing may not be so efficient.
8. CLV/CAC Ratio
This metric is the ratio of your customer lifetime value and customer acquisition cost, the two previous metrics. It is important to measure those separately but also in comparison.
The CLV/CAC ratio will give you an idea of your business' sustainability. A higher ratio means more successful and efficient marketing.
So, you should look for ways to increase it by increasing your customer lifetime value and/or decreasing your customer acquisition cost.
9. Customer Retention and Churn Rate
Customer retention rate is the number of customers a business retains over time, meaning the number of customers that come back to the business for more after they use their services.
Customer churn rate is the opposite of retention rate. It is the number of customers that cut relationships with the business after using their products or services —either shifting to another brand or overall stop making purchases from the industry.
It is important to measure your own customer retention and churn rates because they are a good sign of how people like your products.
It is good and mostly very efficient to have loyal and retaining customers, so having higher retention rates might be an indicator of success for your brand.
10. Customer Engagement
How your customer and potential customers interact with your website can provide you the details of what their wants and needs are.
- Which pages they visit the most often,
- which products they view,
- how much time they spend on which page,
- how often they visit the overall website,
can all be smaller metrics you can track under customer engagement.
These will help you understand how your current website design and layout is working and also will help you create future campaigns and make improvements that will answer your target audience's needs.
11. Social Engagement
Similar to customer engagement on your website, it is also important to track customer engagement on social media platforms.
Types of this could be
- the number of comments under your posts,
- the amount of content share (retweet, repost, direct message, etc.)
- or the amount of saves and downloads.
The social engagement your customers have with your business shows how much they enjoy and resonate with your products or services. It is also a way to let your customers promote your product/service for you.
12. Monthly Recurring Revenue
Tracking your profit each month and also each year is a way to see how your marketing strategies during that period of time has affected sales and how successful you have been.
But doing this regularly and in comparison to the previous months can help you measure your business growth as well. Seeing your monthly or annual revenue will motivate you and keep you on track while help you see the turnout of all your efforts.
13. Net Promoter Score (NPS)
In short, "Net Promoter Score" or "NPS" refers to the number of people who have used your products and services, enjoyed them and recommended your business to their friends and family.
This is an indicator of both your marketing success, because you managed to sell your product and make your customers promote it for you as well, and also your product quality, because people didn't just like it they loved it so much they wanted others to use it as well.
So, higher Net Promoter Score means better products and strong marketing strategies.
You can use HockeyStack's free survey tool to create NPS, churn, or pricing surveys!
14. Conversion Rate
Conversion is your primary goal with all the marketing tactics and campaigns, hence is the number one indicator of your success. You should monitor conversion rates regularly and move according to the results.
High conversions means that your strategies are strong and have worked well. Low conversion rates, on the other hand, means that the marketing methods you have been using hasn't been so effective or beneficial.
15. Bounce Rate
A bounce is when a person only views your homepage and leaves your website immediately after. It is good to check the bounce rate on a regular basis and orient yourself accordingly.
If the percentage of bounce on your website homepage is high, it might be time to shake things up a little bit. You might want to make your homepage more engaging and interesting.
Try to add more call-to-action (CTA) buttons —they could be interesting blog titles, images that lead to products when you click on them, or anything that will attract people.
16. Landing Page Conversion Rate
Your landing pages are crucial for the sales you make. You need to know if they do a good job with customer conversions or if they affect your sales negatively.
This metric can help you understand whether your content and landing pages resonate with your customer profiles.
You can try making small changes like mixing up the offers or changing the wording and layout in order to find the most sales-optimizing form for your landing pages.
17. Referral Traffic
Referral traffic measures the number of people who comes to your website without a search engine —either through another website or social media or web ad.
If you have the right social links and backlinks that you will see that a high rate of your traffic is caused by referrals.
UTM tracking codes are the most commonly used method to measure referral traffic by marketers. You can get help from custom analytics tools like HockeyStack as well.
18. Overall Website Traffic
This is a measure of the total number of visitors you get to your website over a certain period of time.
This metric can especially be useful to help see if a certain content praise or campaign had worked well. It can also be a strong indicator of whether your website content is resonating with your customer persona or not.
19. Time Spent on Site
Seeing a lot of traffic to your website is good, but it is also important how long these people spend actually on your website.
You need to know if people enjoy your content and spend a lot of time reading your blog and browsing your products. This is also a good indicator as to how your website and content resonates with your target audience.
20. Number of Free Trial Sign-Ups
The referral traffic rate, overall website traffic, time spent on your website, number of social media shares, and etc. —they are all important metrics, but in the end there is one that sums them all up.
The number of people who signed up for a free trial shows how many people are actually interested in making a purchase from your business. They are the ones closest to converting and higher rates show higher levels of marketing success.
21. Testimonials and Reviews
It is a way for many ecommerce businesses to show their genuinity, increase trust in customer relationships, and an opportunity to prove their credibility.
Let's have a look at testimonials and reviews and their effects separately.
- Reviews are one of the biggest influences on customers' purchasing decisions because they come from a community that they are a part of. Reviews can be in the form of 5 or 10-point scale. Higher rates will mean that your product or service is successful and showing the high review rate will convince people to convert. However, lower rates will repel customers and may be a sign for you to reassess your product/service.
- Testimonials can be a little trickier to measure since not many marketing analytics tools allow options specified for testimonial analysis. You may need to combine multiple tools to measure the performance of customer testimonials. You can also conduct A/B split testing to see which testimonial works better. Although it sounds a little challenging to measure this, it is still a very important metric that shouldn't be ignored.
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