CECILIA DINESH
8446324551
BE COMPUTER ENGINEERING
Data Analytics
7th January 2026
Outline the key metrics a SaaS sales and marketing organization should track.
Identify relevant metrics, create dummy data and present the key insights using
charts/visualizations.
OVERVIEW
SaaS metrics are a way to track how well your software-as-a-service business is
performing. The five key SaaS metrics are churn, customer retention,
customer acquisition cost (CAC), monthly recurring revenue (MRR) and
customer lifetime value (CLV). These show how much money you have coming
in and how effectively you gain and keep [Link] SaaS companies
report on different metrics, depending on business model, growth stage and
costs associated with their [Link], three things are fundamental to every
SaaS company: profitability, growth and cash. Profitability depends on
revenue generated monthly, since SaaS businesses depend on subscriptions.
Growth happens as marketing efforts increase name recognition. Spend too
much cash on product development and you may face a crunch as that
investment is not recouped until you gain sufficient customers.
KEY SAAS METRICS TRACKED
(referred 14 SaaS Metrics for Financial, Marketing, Sales and Customer Success
,Austin CaldwellAustin Caldwell | Senior Product Marketing Manager)
1. Core Financial Metrics
Metric Why it matters
MRR (Monthly Recurring Revenue) Predictable revenue & sustainability
ARPA Pricing effectiveness & account expansion
CAC Efficiency of sales & marketing spend
CLV Long-term revenue per customer
Churn Rate Customer retention & satisfaction
DUMMY DATA
The Above is the dummy raw data without any metrics calculations.
For Metrics calculated able you can view the below excel:
[Link]
NlCBS6CRmQRjBM/edit?usp=sharing
RELEVANT METRIC
Metric Purpose Formula
MRR (Monthly Revenue Monthly Revenue
Recurring Revenue) predictability
CAC (Customer Sales & (Marketing Spend + Sales Spend) ÷
Acquisition Cost) marketing New Customers
efficiency
CLV (Customer Long-term (1 ÷ Churn Rate) × ARPA
Lifetime Value) profitability
Churn Rate Customer Lost Customers ÷ Total Customers
retention health (Start)
ARPA (Average Pricing Monthly Revenue ÷ Total Customers
Revenue Per effectiveness (End)
Account)
INSIGHTS
MRR (Monthly Recurring Revenue)
● Most SaaS companies charge monthly for their services.
● Here, MRR shows a steady upward trend, indicating predictable and
recurring income.
● This shows the company is continuously growing and is financially stable
and has good cash flow, making it attractive to investors.
● Even though MRR shows strong long-term growth, we can see a
temporary decline around January 2024 when MRR drops from
₹520,000 (Dec 2023) to ₹410,000 (Jan 2024).
● Reason for this decline can be :
a. During the period Dec 2023 to Jan 2024 lost customers increased
from 35 to 70 , directly impacting recurring revenue.
b. At the start of the new year, SaaS companies often experience a
temporary dip in spending as customers review and realign their
budgets.
Customer Acquisition Cost (CAC)
● Your customer acquisition cost (CAC) metric tracks the average price you
pay to gain a new customer. Usually, this will include the money you spent
on acquisition, marketing, and sales.
● Lower CAC means higher profitability per customer.
● CAC gradually decreases over time.
● This shows that marketing and sales teams are becoming more efficient.
● We can also observe a temporary increase in CAC between Nov 2023 and
Jan 2024, but later the curve decreased.
● In Jan 2024, the company spent more on marketing and sales, but
acquired fewer new customers compared to the previous months.
● It can also be observed that New customers reduced from 290 (Dec 2023)
to 220 (Jan 2024) but spending is high.
Customer Lifetime Value (CLV)
● Customer lifetime value measures the amount of money a specific
customer (or an average customer) will pay your company during their
lifecycle with you.
● CLV gradually increases over time, showing that customers are staying
longer and spending more.
● This can help companies create pricing plans, optimize buyer retention,
and determine how much they can afford to spend on acquiring new
customers.
● We can also observe a jump in CLV between Dec 2023 (₹14,280) and Dec
2024 (₹49,068), which continues to rise steadily thereafter.
● In Jan 2024, CLV went down to ₹5,686 because the company got fewer
new customers (220), even though they spent a lot on marketing and
sales.
Churn Rate
● The Churn Rate shows the percentage of customers who stop using the
product during a given period. A lower churn rate means better customer
retention and more stable revenue.
● We can observe that churn rate gradually decreases over time, which
shows that the company is improving in retaining its customers.
● Also a temporary increase in churn in Jan 2024 (0.014) compared to Dec
2023 (0.0055) can be seen in the line chart . This indicates that more
customers left the platform during this month.
● Also in Jan 2024, the number of lost customers had increased to 70, while
customer acquisition was lower, which caused the churn rate to rise.
● After Jan 2024, the churn rate continues to decline steadily showing strong
customer satisfaction and improved retention.
ARPA (Average Revenue Per Account)
● ARPA (Average Revenue Per Account) shows how much revenue the
company earns on average from each customer in a month. A higher
ARPA means that customers are spending more on the product.
● From the line chart we can see, ARPA gradually increases over time.
● This indicates successful upselling, better pricing, or customer plan
upgrades. Also customers feel the product is worth more.
CLV vs CAC (Best investor-ready visualization for SaaS health)
This chart compares Customer Lifetime Value (CLV) with Customer
Acquisition Cost (CAC) over time. CAC stays low and stable, while CLV
increases significantly. This means the company spends less to acquire
customers but earns much more from them over their lifetime. The growing gap
over time reflects better retention, effective pricing, and improved marketing
efficiency, indicating a strong and sustainable SaaS business.
Top-of-Funnel metrics
● This visualization Shows demand (traffic), lead capture (leads), and
funnel efficiency (conversion rate) in one view
● Bars show that leads and customers are increasing steadily
● The line shows conversion rate rising from ~5.1% to ~6.2%
● This means:
a. Lead quality is improving
b. Sales funnel efficiency is getting better
c. Growth is not just from more traffic, but better conversion
Key Research Insights
● Efficiency in marketing and sales enhances over time as CAC continuously
reduces and the number of acquired customers enhances.
● Revenue growth is sustainable, with an ever-increasing Monthly Recurring
Revenue (MRR).
● Lead generation scales well with website traffic, showing a strong
top-of-funnel.
Higher CLV with lower CAC confirms a healthy and profitable SaaS
growth model.
Conclusion
The SaaS business demonstrates a healthy and maturing growth trajectory:
● Short-term fluctuations (e.g., Jan 2024) reveal operational insights rather
than structural weaknesses.
● Long-term trends—lower CAC, higher CLV, rising ARPA, and declining
churn—are strong signs of a scalable and profitable SaaS model.