Essential KPIs for SaaS business growth

Published on December 11, 2023

The definition of growth has drastically changed for SaaS companies in the last 12 months. The software industry went from a standard of hyper-growth targets and sugar-high valuations to a focus on profitable, sustainable growth and more conservative valuations. In Simon-Kucher’s Global Software Study, using a panel of over 500 B2B SaaS executives, respondents reported an average revenue growth rate below 10% in 2022. This is in stark contrast to the results from 2020 where 40% reported a growth rate above 20%.

The changing economic climate has put pressure on many KPIs: increasing costs of salaries, higher cost of capital, lengthening sales cycles, increasing costs per lead, higher discounts to close deals, and increasing churn.

Given these factors at play, the landscape of business growth in SaaS has evolved. Today, SaaS leaders need to focus on longevity, prioritizing growth measures that are equal parts profitable and sustainable. In turn,…

KPIs

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