This is Part 2 of my epic four-part series, taking a deep-dive into SaaS metrics. I’ll be covering KPIs for Growth, Marketing, Sales and Customer Success, and offering formulae, explanations and expert opinions for 50 essential metrics.
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Section 2: Marketing Metrics
Rapid, large-scale customer acquisition is a pre-requisite for growth, and these marketing-specific SaaS metrics are designed to help you understand and improve your ability to generate new visitors, leads and customers.
As well as providing insight into customer acquisition, these SaaS metrics will help determine the quality of your leads. After all, marketing and sales shouldn’t exist in separate silos, and website visitors and leads don’t mean a thing unless they turn into paying customers.
With both functions having a crucial (and overlapping) role to play in achieving growth, it’s important to choose metrics that cover both camps.
Let’s say you have a goal of 100 new customers this year. In order to reach those 100 customers, you might need 200 engaged, ready-to-buy leads: after all, not everybody you start a conversation with ends up a paying customer.
Working backwards, to generate those 200 sales-qualified leads, you might need to collect the contact details of 400 people, some of whom will have a serious interest in your products, while others will require a bit more time to reach the same place. To generate those 400 leads, you might need 2,000 website visitors.
Understanding how this progression through the sales funnel happens allows you to predict the number of visitors and leads you’ll need to actually hit your sales targets, and gives direction to your marketing strategy.
1) Unique Website Visitors
Unique website visitors refers to the number of distinct people that visit your website over a particular period of time (commonly a month).
Visitors come in all shapes and sizes, from sales-ready buyers to sceptical researchers (and even a few people who’ve ended up on your site by mistake). In order to determine which visitors are which, and identify potential customers, it’s essential to learn more about them.