Scaling a SaaS company doesn’t always require a huge data team or complex BI stack. What most CEOs need are a handful of simple metrics that keep the business focused and aligned. These numbers tell you if you’re growing sustainably, if revenue is predictable, and if customers are sticking around.
Here are five essential metrics you can track today without needing a data science team.
Monthly Recurring Revenue (MRR)
The foundation of any SaaS business is predictable revenue. MRR shows the total monthly subscription revenue you can count on.
Why it matters:
- Reveals whether growth is consistent.
- Helps forecast cash flow and investments.
- Provides a baseline for sales and marketing targets.
Even a simple spreadsheet pulling figures from your billing system is enough to start.
Customer Acquisition Cost (CAC)
CAC measures what it costs to acquire a new customer, including marketing and sales spend.
Why it matters:
- Ensures you aren’t overspending to grow.
- Helps compare acquisition channels.
- Directly impacts profitability.
If CAC is too high, growth isn’t sustainable.
Customer Lifetime Value (CLTV or LTV)
LTV calculates how much revenue an average customer will generate during their time with you.
Why it matters:
- Shows long-term customer value.
- Helps evaluate if CAC is justified.
- Indicates opportunities for upsell and expansion.
A strong SaaS benchmark: aim for LTV to CAC ratio of 3:1 or better.
Net Revenue Retention (NRR)
NRR tells you how much recurring revenue you retain from existing customers after churn, downgrades, upsells, and expansions.
Why it matters:
- High NRR = your product delivers real value.
- Expansion revenue offsets churn.
- Strong NRR is a key factor in SaaS valuations.
Anything above 100% means your customer base is growing without new sales.
According to Bessemer Venture Partners’ State of the Cloud report, best-in-class SaaS companies target NRR above 120%, showing how powerful expansion revenue can be for growth (BVP Cloud Report).
Sales Cycle Length
Sales cycle measures the average time it takes to close a deal from first touch to signed contract.
Why it matters:
- Shorter cycles mean faster revenue recognition.
- Reveals bottlenecks in your sales process.
- Helps forecast future pipeline more accurately.
Even a simple CRM report can track this reliably.
Key Takeaway
You don’t need dashboards full of vanity metrics or a team of analysts. By tracking MRR, CAC, LTV, NRR, and sales cycle length, you’ll know exactly how healthy your SaaS growth engine is — without drowning in data.
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At Praxxeum, we help SaaS providers build RevOps systems that track the right metrics, align teams, and scale revenue predictably.
👉 Ready to simplify your growth metrics?
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