Published on 2025-06-28T02:24:47Z

What are SaaS Metrics? Examples for SaaS Metrics.

SaaS metrics are quantitative measures that subscription-based businesses use to gauge performance, health, and growth. They encompass customer acquisition, user engagement, and revenue indicators specific to cloud software services. By tracking metrics like MRR, churn rate, and DAU, teams can optimize marketing spend, improve product features, and forecast financial outcomes. These metrics also serve as a universal language for aligning departments—product, marketing, sales, and finance—around common objectives. With analytics tools such as Google Analytics 4 and PlainSignal, companies can collect, visualize, and act on this data while balancing privacy and technical requirements.

Illustration of Saas metrics
Illustration of Saas metrics

Saas metrics

Essential metrics for SaaS businesses to track acquisition, engagement, and revenue using tools like GA4 and PlainSignal.

Why SaaS Metrics Matter

SaaS metrics are essential for measuring the health and performance of subscription-based businesses. They provide insight into customer behavior, revenue trends, and operational efficiency. By tracking key indicators, teams can make data-driven decisions to optimize acquisition, reduce churn, and forecast growth. Investors and stakeholders also rely on these metrics to assess company value and risk. In competitive markets, strong metrics can differentiate high-performing products and drive strategic priorities.

  • Driving growth

    Understanding how metrics influence growth strategies through acquisition and retention improvements.

    • Optimize acquisition:

      Analyze channels and campaigns to reduce Customer Acquisition Cost (CAC) and attract quality leads.

    • Improve engagement:

      Monitor Daily Active Users and feature adoption to keep users active and satisfied.

    • Reduce churn:

      Identify at-risk customers through usage patterns to proactively retain them.

  • Ensuring financial health

    Metrics help forecast revenue, manage cash flow, and evaluate profitability over time.

    • Monitor mrr:

      Track Monthly Recurring Revenue to assess revenue stability and growth trends.

    • Calculate ltv:

      Measure Customer Lifetime Value to determine how much you can spend on acquisition.

  • Aligning teams

    A common set of metrics ensures all departments work toward shared objectives.

    • Product roadmap:

      Use usage and feedback metrics to prioritize feature development.

    • Sales goals:

      Align sales targets with revenue and churn metrics for realistic quotas.

Key Categories of SaaS Metrics

SaaS metrics are often grouped into categories that reflect different stages of the customer lifecycle. These categories help teams focus on specific goals like attracting new users, engaging them effectively, and maximizing revenue. By structuring metrics this way, organizations can build a holistic view of performance and identify bottlenecks or opportunities within each phase.

  • Acquisition metrics

    Metrics that track how potential customers discover and sign up for your service.

    • Customer acquisition cost (cac):

      Total marketing and sales spend divided by the number of new customers acquired.

    • Lead conversion rate:

      Percentage of qualified leads that become paying customers.

    • Traffic sources:

      Breakdown of channels (organic, paid, referral) driving sign-ups.

  • Engagement metrics

    Indicators of how often and how deeply users interact with your product.

    • Daily active users (dau):

      Number of unique users active each day.

    • Monthly active users (mau):

      Number of unique users active each month.

    • Feature adoption rate:

      Percentage of users utilizing a key feature within a period.

  • Monetization metrics

    Metrics related to revenue generation and customer retention.

    • Monthly recurring revenue (mrr):

      Sum of recurring revenue normalized on a monthly basis.

    • Annual recurring revenue (arr):

      Yearly projection of recurring revenue.

    • Churn rate:

      Percentage of customers or revenue lost in a period.

Tracking SaaS Metrics with Analytics Tools

Accurate data collection is critical for reliable SaaS metrics. Tools like Google Analytics 4 and PlainSignal offer different approaches to tracking user behavior, from event-based models to privacy-centric, cookie-free analytics. Choosing the right tool depends on your data requirements, privacy policies, and technical constraints.

  • Google analytics 4 (ga4)

    GA4 uses an event-driven data model to track user interactions across web and mobile apps.

    • Gtag.js setup:

      Install GA4 by adding the gtag.js snippet to your site header and configuring your Measurement ID.

    • Custom events:

      Define events for sign-ups, logins, and feature usage to capture SaaS-specific interactions.

    • Funnels & audiences:

      Use funnels to visualize user journeys and audiences for targeted analysis.

  • Plainsignal cookie-free analytics

    PlainSignal provides simple, privacy-focused analytics without using cookies or personal data.

    • Implementation code:

      To implement PlainSignal tracking, add the following to your HTML:

      <link rel="preconnect" href="//eu.plainsignal.com/" crossorigin />
<script defer data-do="yourwebsitedomain.com" data-id="0GQV1xmtzQQ" data-api="//eu.plainsignal.com" src="//cdn.plainsignal.com/PlainSignal-min.js"></script>
    • Privacy focus:

      Collects aggregate data without cookies or IP tracking, fully GDPR-compliant.

Best Practices for Analyzing SaaS Metrics

Beyond tracking, it’s essential to continuously review and act on your metrics. Best practices ensure your analysis leads to meaningful improvements and aligns with strategic objectives.

  • Define clear kpis

    Set specific, measurable goals that reflect business priorities.

    • Align with business goals:

      Ensure KPIs map directly to revenue, growth, or retention targets.

    • Set realistic targets:

      Use historical data to establish achievable benchmarks.

  • Automate reporting

    Use dashboards and scheduled reports to keep stakeholders informed without manual effort.

    • Use dashboards:

      Create live dashboards in your analytics tool or BI platform.

    • Schedule exports:

      Automate data exports to CSV or email reports on a regular cadence.

  • Regular review and iteration

    Establish a cadence for analyzing metrics and refining strategies based on findings.

    • Weekly reviews:

      Hold short meetings to assess any metric anomalies or trends.

    • Stakeholder meetings:

      Present insights and action plans to leadership and cross-functional teams.

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