8 SaaS metrics you should be monitoring

The SaaS business model heavily relies on small subscription payments, presenting challenges such as the high cost of customer acquisition and the need for a delicate balance between customer acquisition cost (CAC) and lifetime value (LTV). Key metrics like Monthly Recurring Revenue (MRR), SaaS Quick Ratio, CAC, Customer Lifetime Value (CLV), Daily and Monthly Active Users (DAU & MAU), Activation Rate, Churn, and Customer Engagement Score (CES) provide insights into company health, customer behavior, and financial stability. These metrics guide decisions on growth acceleration, cost management, and marketing focus. Monitoring these indicators helps identify trends in customer retention, service engagement, and revenue sustainability, informing strategies to optimize onboarding, reduce churn, and maintain a healthy business model.