10 Growth Metrics Every B2B Company Should Examine Every 90 Days

Real time growth metrics are key to the foundations of your 90-day goals. They are the yardstick against which you progress towards the longer term vision of your company.

A fractional CMO guides everything that makes up the daily, weekly, monthly, quarterly and annual marketing sprints. The data feedback that results is given context for the leadership team through metrics. Data powers the machine learning and AI in your marketing systems. Marketing metrics allow the marketing team to pivot fast when necessary and stay the course when needed.

Once per quarter, the leadership team should examine all the metrics below, asking:

  • What actions led to these results?
  • Where did expectations exceed or underperform results?
  • What resources were underutilized that could be redeployed?
  • What efforts were hampered by budget, people or systems?

With a fractional CMO providing answers to these growth questions, you are best situated to answer the most important question: 

Where are we going next?

Beware of “Watermelon” Metrics

Some metrics look green on the outside, but when you look inside they are all red.

This is what is known as the “watermelon effect.”

The longer the time period referenced in reporting, the more opportunity there is for short term indicators in metrics to “iron out” and look better than they might actually be. 

Good questions to ask to discover those watermelon metrics are:

  • What metrics are seeing short term changes recently that have drawn your attention?
  • How do these results compare in the wider industry competitive context?

The Most Important Quarterly Metrics for B2B

The key metrics that a fractional Chief Marketing Officer (CMO) of a B2B SaaS (Software as a Service) company would present to investors on a quarterly basis are aligned with business objectives and financial performance. 

These are all indicators that would be referenced in meetings as frequently as daily in the marketing team. When reporting in to leadership and investors, it is important to stay consistent and high-level in the marketing metrics to allow for effective long-term trends understanding by all stakeholders.

Here are key metrics that would be relevant for a B2B SaaS company:

Customer Acquisition Cost (CAC):

CAC measures the average cost of acquiring a new customer. Investors are interested in how efficiently the company is acquiring customers relative to the revenue they generate.

Typical Goals for CAC

  1. For existing channels: holding CAC steady or lowering it over 90 day period for a certain channel and/or across a holistic marketing funnel
  2. For new channels, products and services: creating, launching and rapidly optimizing to set benchmark CAC and/or measure impact on a holistic funnel

Customer Lifetime Value (CLTV):

CLTV represents the total expected revenue from a customer throughout their entire relationship with the company. Investors want to see that the lifetime value exceeds the cost of acquisition.

Typical Goals for CLTV: 

  1. For existing channels: increasing ROAS to 3.5x or above; holding ROAS steady while increasing traffic and sales flow 
  2. For new channels: creating, launching and rapidly optimizing to set benchmark ROAS and/or measure ROAS impact on a holistic funnel 

CAC Payback Period:

CAC Payback indicates how long it takes for a company to recover the cost of acquiring a customer. A shorter payback period is better.

Typical Goals for CAC Payback Metric

  1. For existing channels: lowering CAC Payback to 12 months or less 
  2. For new channels: measuring initial benchmark CAC Payback for customers acquired through the channel; optimize in next sprint 

Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR):

MRR and ARR reflect predictable revenue generated from subscription-based business models. Investors demand rapid growth and loyalty over time for any recurring revenue streams.

Typical Goals for MRR and ARR

  1. For existing channels: increasing ARR by 2x or 3x in a single year 
  2. For new channels: researching, creating, launching and rapidly optimizing campaigns to gauge initial market interest; set growth goals for next sprint

Churn Rate:

Churn rate measures the percentage of customers who cancel their subscriptions. Lower churn rates means you have highly satisfied and sticky customers. That means long-term sustainability and happy investors.

Typical Goals for Churn Rate

  1. For existing channels: decreasing churn by 20%; holding off churn from competitor with specific offering or feature; identifying and remediating key reasons for churn
  2. For new channels: creating, launching and rapidly optimizing to set benchmark  rates for churn, adjust MVP offerings and move to PMF stage as rapidly as possible 

Net Promoter Score (NPS):

NPS measures customer satisfaction and loyalty. A high NPS suggests strong customer advocacy, which is crucial for long-term success.

Many companies choose to add occasional NPS drips to their software and into their customer emails. Collecting NPS scores early in the customer onboarding process and in regular followup periods is highly advised. Having a rolling Net Promoter Score that your leadership team can look at on a quarterly basis is the way to go.

Typical Goals for Net Promoter Score

  1. For companies with only “good” NPS scores or lower: increasing NPS into the “great” range, which typically means getting NPS scores over 20 
  2. For new companies: creating, launching and rapidly optimizing to hit “great” to “amazing” scores, which typically means 25 to 50 range 

Lead-to-Customer Conversion Rate:

This metric tracks the percentage of leads that convert into paying customers. A rising conversion rate indicates effective marketing and sales alignment.

Typical Goals for Conversion Rate Optimization

  1. For existing channels: increasing conversion rates by 2-3% and increasing average order size by 20% 
  2. For new channels: creating, launching and rapidly optimizing to set benchmark conversion rates and identify frictions in messaging, branding, pricing, and experience to be remedied 

Quantity of Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL):

MQLs and SQLs help assess the quality of leads generated by marketing and their readiness for sales engagement.

Typical Goals for MQL and SQL Growth

  1. For existing channels: increasing flow of SQLs and MQLs in a key ICP by improving targeting, messaging, offers, landing experiences, pricing, journey and more 
  2. For new channels: creating, launching and rapidly optimizing to set benchmark levels for MQL and SQL flow and understand next steps for driving more growth 

Pipeline and Funnel Metrics:

Metrics such as the size and velocity of the sales pipeline, conversion rates at each stage of the funnel, and time to close are critical for evaluating sales effectiveness and forecasting.

Typical Goals for Pipeline and Funnel Growth

  1. For existing channels: increasing traffic, inquiry and sales flow through the funnel; applying conversion rate optimization and sales optimization to remove frictions; increase average order size 
  2. For new channels: creating, launching and rapidly optimizing funnels to set benchmarks, rapidly iterate and improve on initial flow and impact

Return on Ad Spend (ROAS):

ROAS measures the revenue generated for every dollar spent on marketing ad spend. Investors want to see a positive return on marketing efforts. Many fractional CMOs factor in the cost of working the media spend (agency fees, contractor expenses, creative costs) into ROAS for a truer picture on marketing expenses.

Typical Goals for ROAS: 

  1. For existing channels: increasing ROAS to 3.5x or above; holding ROAS steady while increasing traffic and sales flow 
  2. For new channels: creating, launching and rapidly optimizing to set benchmark ROAS and/or measure ROAS impact on a holistic funnel 

Other Metrics for B2B that Every Fractional CMO Should Watch

Some indicators are not as easily quantifiable as the B2B SaaS metrics above. For fractional CMOs, however, they can be important “canary in the coal mine” indicators of where to go next, what frictions are out there, and what competitors are doing.

Once identified and quantified, many data points can be captured from these areas below to track on a data dashboard. 

Marketing Attribution Metrics:

Understand the channels and campaigns that contribute most to customer acquisition. Attribution models help allocate marketing resources effectively. Consider new software tools (or fixing those you have that don’t yet operate properly) that can help pinpoint where the best customers are coming from.

Market Expansion Metrics:

Metrics related to upsells, cross-sells, and expansion revenue demonstrate the company’s ability to grow revenue within existing customer accounts. Make sure your platforms are well-integrated so that attribution data can flow from the first click all the way to loyal returning customer behavior.

Competitive Positioning, Website Authority and Share of Voice:

Evaluate the company’s market share, brand perception, and share of voice in comparison to competitors. Software tools like SEM Rush, Google Trends and other are helpful if seeing where you stand versus you competitors.

Strategic Initiatives and Results:

Highlight key strategic initiatives undertaken during the quarter and the corresponding results. This could include successful product launches, partnerships, or market expansions. Did they work out as expected in terms of market impact, revenue generated, awareness gained?

The 90-Day Marketing Metrics Review Is Mandatory

Providing a comprehensive overview of these metrics, along with insights into the strategic decisions made by the marketing team, can give investors a clear picture of the company’s performance, growth trajectory, and market competitiveness. 

The fractional CMO is there to tailor the presentation of metrics to the specific goals and priorities of the B2B SaaS company and its investors. 

Metrics form the basis of a powerful – and truthful – discussion that will lead your decisionmakers to the right decisions quickly and accurately.

https://snohat.com

Founder, Fractional CMO