The key B2B-SaaS metrics every start-up should track

Without a detailed definition of your calculation the Churn rate is not very valuable in our opinion. Companies calculate, report and understand the logo Churn rate in different ways. If one out of hundred customers churned in a month you could easily report 1% monthly logo Churn, however if only 5 customers were able to Churn (due to contract terms) this number is misleading. You should better report 20% (Cohort)

Build a comprehensive financial model including a plan for the next 2–4 years. Ideally calculations are based on operating Kpis like Churn, Acv, sales Metrics, Headcount payments etc. Saas recommends building a comprehensive financial model including a plan for the next 2–4 years.

To get a good feeling of your next months’growth you should also be aware of your sales pipeline and sales funnel. Both are important, and the difference is small but crucial. The sales pipeline gives you the value and amount of deals at this reporting date at a specific stage. It gives you insights on what deals you or your sales Reps are working on.

Customer acquisition cost (Cac) is the sum of all sales and marketing spending divided by the number of new customers in a given time period. It also allows you to calculate how long it will take to turn a customer breakeven when you subtract one-time revenues and divide it by the Mrr (I.E. Payback-time) a good Saas business model is driven by a Cltv that exceeds the Cac significantly (at least 3 times)

Founders should build a decent reporting which allows for tracking the aforementioned most important B2B Saas Kpis. Build a decent financial plan which is driven by sales and/or marketing spending. This plan should Optimally lead to the same Kpis so you can benchmark your progress and review your assumptions on a monthly basis. There is no right or wrong and there are no fixed definitions on B2B Saas Kpis.