SaaS Sales Benchmarks You Need To Track 

SaaS sales benchmarks

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Software as a service is a digital industry. There are no physical products to track inventory, sales, and revenue. 

Fortunately, with the help of analytics software, CRM systems, and good old-fashioned spreadsheets, you can track your SaaS sales benchmarks and your success. 

Not sure which metrics are worth tracking and overwhelmed by the dozens of options online? Don’t worry. Today, we’ll share the top SaaS sales benchmarks worth tracking. 

What Are SaaS Sales Benchmarks? 

SaaS sales benchmarks are collections of present and historic SaaS sales data. This data is collected across all departments to compare company performance with past performance. The data is also used to compare how the SaaS sales compare with competitors and industry averages. 

Why Is It Important To Track Saas Sales Benchmarks?

Tracking SaaS sales benchmarks is a challenging feat. But, if you’re tempted to skip SaaS sales benchmarking, reconsider. SaaS sales benchmarks are critical for improved business performance. 

Growth Trajectory

The goal of any business, whether a startup or established, is to grow – which is why tracking SaaS sales benchmarks is essential. You won’t know whether you’re growing, stagnating, or bleeding money if you don’t track your company metrics. 

By effectively tracking historic SaaS sales and comparing them with current data, you can paint a clear picture of your company’s sales and answer key questions. Is the company growing? At what rate is revenue increasing? Is this enough to satisfy investors? 

Through this, you can also estimate your growth trajectory and implement strategies to maintain or improve SaaS sales. 

Industry Average Comparison

Beyond internal historical SaaS sales comparison, SaaS sales benchmarks are also used to compare your sales metrics with industry averages, including those of your closest competitors. 

These benchmarks will help you establish whether or not you’re meeting industry standards or if you’re falling behind. From there, you can work on improving your metrics. 

Sales Forecast 

As your SaaS sales data collection advances and you gain more insight into SaaS sales, you can turn this historic data into future data. The SaaS sales benchmark data will allow you to forecast sales trends, do’s and don’ts, potential earnings, and so much more. 

SaaS Sales Goals 

Collecting internal data, competitor data, and SaaS sales forecasting are all great for establishing SaaS sales goals. You can use the SaaS sales benchmark data to create realistic SaaS sales goals based on actionable, data-driven insights and boost your SaaS sales

Top Saas Sales Benchmarks

There are dozens, if not hundreds, of SaaS sales metrics along the SaaS sales pipeline, and trying to track all of them is overwhelming. Instead, choose the most relevant of these top SaaS sales benchmarks to start your tracking journey.

  1. Activation Rate 

SaaS sales activation is the moment a customer uses key software features. These are features beyond the initial startup and usually imply the customer is delving deeper into the product. When customers delve deeper into the software, it’s an indicator that they’re invested in the software. 

The activation features differ from software to software and work better on software with free trials. The activation point can be set as the moment a free user decides to become a paid member. 

Create an activation strategy and track the rate at which users engage in the activation pipeline. It’s a critical metric for gauging long-term revenue. 

  1. Monthly Recurring Revenue 

Monthly recurring revenue, also known as MRR, is the amount of revenue your SaaS company makes a month. The MRR is not calculated with estimates, but rather with current active users. To calculate your MRR, all you need to do is multiply your software’s active users and the amount billed per user every month. 

Tracking the MRR will help you plan budgeting ahead of time. It’s also a simple but effective way to track the company’s income trajectory. If the MRR is increasing every month, then you’re doing good!

  1. Lead Momentum 

Lead momentum or lead velocity rate (LVR) is the rate at which your company’s SaaS sales are growing. The lead momentum metric is mostly used in forecasting company growth using the trajectory of qualified leads throughout 6 to 12 months. This is then used to estimate business growth via the past LVR percentage.  

  1. Churn Rate 

Besides improvement metrics, it’s also important to isolate and track your losses. This is why it’s important to track your company’s churn rate. 


There are two main churn rates worth tracking: 

  • Customer Churn: Customer churn refers to all the customers your software has failed to retain. To get the full picture, don’t just track numbers. Track other demographic data to determine where you’re failing to hook customers. 
  • Revenue Churn: Revenue churn is the percentage of revenue your company has lost over a period due to canceled subscriptions or software downgrades.

Together, customer and revenue churn can offer valuable insight into which demographics or needs your software is failing to satisfy. 

  1. Customer Acquisition Cost 

Customer acquisition cost (CAC) is how much you’re spending to gain new clients. While it’s essential to spend money on customer acquisitions, spending too much and earning too little is a sign that your sales are failing to retain customers somewhere along the SaaS sales cycle

  1. Contact To Customer Conversion Rate 

Another metric that offers insight into your SaaS sales cycle is the customer conversion rate. Also known as the lead-to-customer rate, this metric measures how many leads convert into paying customers. 


A healthy conversion rate can range anywhere from 2% to 10%, depending on your industry. Tracking your customer conversion rate and comparing it with upper-market values in your industry will help you understand whether your business is a competitive option with good prospects. 

  1. Customer Retention Rate

The customer retention rate is the opposite of the customer churn rate. This metric measures how many active customers choose to continue using your software service. The goal is to have a high customer retention rate and a low customer churn rate. 

For example, if your annual churn rate is the SaaS industry average of 5%, then your retention rate should be 95%. 

  1. Customer Engagement Score 

Next up is your company’s customer engagement score. A customer engagement score is based on how many times a user logs into their software account, which features they use, how long they stay online, etc. All of these measure how engaged the customer is with the software. 

Beyond checking whether your software is effective, the engagement score provides insights into your churn rate – specifically, which customers might drop their subscriptions. The final score and engagement benchmarks also depend on what industry you’re in. 

  1. Sales Cycle Length 

The SaaS sales cycle length can vary wildly from industry to industry. In general, it’s the time it takes for a lead to turn into a paying customer. 

Knowing how long your sales cycle takes can help with revenue forecasting. It’s also a great metric for checking the effectiveness of your sales funnels and SaaS salespeople. If the SaaS sales cycle length is longer than the industry average, it could cost more money and point to ineffective marketing. 

Conclusion 

To grow your SaaS company and establish your brand, it’s important to track where your business has been and is heading. But with dozens of metrics and software options out there, narrowing down the right benchmarks for your brand can be overwhelming. 

Through these SaaS sales benchmarks, you can effectively track your revenue trajectory, remain competitive within your industry, forecast revenue, and set data-driven goals. Choose the benchmarks most applicable to your industry and grow your data insights to further improve sales. 

If you’re looking to improve your SaaS sales further, consider optimizing your product demos. With Saleo, you can create captivating, interactive, and data-complete demos. Request a demo today! 

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