What if you could instantly align your executive team, board, and investors on the metrics that matter most?

As head of the SaaS Vertical at Sage Intacct, I’ve helped over 2000 peers do just that.

After partnering with SaaS leaders at all stages, from early traction to IPO, I’ve identified proven frameworks to help track success & inform your board as you scale.

In today’s uncertain market, alignment and visibility into core metrics can make or break your valuation.

This article will walk you through the exact frameworks I’ve honed from working with thousands of SaaS companies. You’ll learn everything from how to identify your “cathedral metrics” to how to install systems that create alignment at all levels.

I’ll also share tactical examples of SaaS leaders that leveraged these techniques to improve growth, retention, and valuation.

If you want to get your executive team, board, and investors rallied around the metrics that matter, I hope you’ll find this article invaluable.

So, let’s dive in!

  • Framework 1: Identify Your Key Metrics
  • Framework 2: Set targets that drive growth
  • Framework 3: Track progress to align your team
  • Key takeaways

Framework 1: Identify your key metrics

I like to start with a story that illustrates the importance of metrics that capture your higher purpose, not just operational details.

Think of a medieval cathedral builder hustling down a dirt road to the worksite. He passes three people laying bricks and asks each one, “What are you doing?”

The first replies, “I’m stacking bricks.”  

The second says, “I’m stacking bricks to build a wall.”

The third answers, “I’m stacking bricks to build a wall to construct a cathedral that will stand for generations.”

The first person is focused on tasks, the second on immediate goals. But the third connects their daily labor to a higher purpose.

As you tell your company’s story through metrics, go beyond “stacking bricks” of operational data. Link metrics to the cathedral you’re building – your mission and reason for being.

Now let’s get practical. Every SaaS company has a unique value proposition and business model. There’s no one-size-fits-all metric.

Factors like your customers, contracts, market dynamics, growth projections, go-to-market model, and more determine which metrics best capture your “meaningful underlying business dynamic.”

20 metrics for SaaS marketers
In this article, we’ll be sharing 20 important metrics for SaaS marketing, ranging from acquisition metrics to monetization metrics. We’ll explain what each metric is, how they can be tracked, and most importantly, why they should be tracked.
Future of SaaSDean Millar

As examples, common SaaS metrics include:

🌱 Growth: ARR, logo/dollar retention

💵 Profitability: Gross margin, net revenue retention, CAC payback  

🏃 Efficiency: Avg revenue per employee, payback period

⚖️ Financial health: Cash burn rate, months of runway

To pick your “cathedral” metrics, first get alignment across leadership on your definition of value. Where do you agree? Where do you disagree? Ruthlessly focus on productive outcomes.

Then consider factors like:

- Customer types and segments

- Contract lengths and revenue recognition

- Growth stage and market maturity

- Billing and sales models

For example, SaaS companies that recently IPO’d calculate churn very differently:

- Box: Contracts >$5K in Annual Contract Value

- SmartSheet: Customers with 4+ users

- Dropbox: Customers billed >$100 per month  

Work with your board and auditors to tailor metrics to your unique business. Just be clear in definitions and calculus.

💡 Now take a moment to reflect: What 1-3 metrics best capture your “meaningful underlying business dynamic”? Is your team aligned? If not, how can you get there?

SaaS metrics
It goes without saying that Saas orgs want to grow and scale, right? Whether you’re a hot new startup, mid-growth, or a late-growth established brand, all SaaS orgs want their revenue to skyrocket.
Future of SaaSFuture of SaaS

Framework 2: Set targets that drive growth

Once you’ve identified key metrics, you need macro-level targets to gauge success. Investors' expectations shift as you progress from seed stage to IPO. Here’s an overview:

Early Stage:

- Show 10+ happy customers to prove product-market fit

- Define ideal customer profile (ICP) and repeatable sales cycle

Growth Stage:

- Prove value delivery through consistent pricing

- Create 3-year targets showing product-market fit

Late Stage:

- Show scalability through benchmarks like net revenue retention

- Demonstrate path to profitability and cash flow  

Early stage companies should focus on customer traction and repeatable growth. Measure product adoption across cohorts, sales velocity through the funnel, and direct customer feedback. Use these insights to refine ICPs and product roadmaps.

In the growth stage, concentrate on proving value delivery, repeatable sales cycles, and compelling unit economics. Key metrics are Months to Recovery on CAC and LTV:CAC ratios above 3-4x.

Late stage companies need to assert market leadership through predictable, profitable, and efficient growth. Track revenue growth vs. market benchmarks, operational metrics like net revenue retention and sales rep productivity, and traditional P&L metrics.

At each stage, link metrics to milestones that reinforce your specific value proposition and business model.

💡Take a moment to reflect on your company’s stage. Where are your metrics strong? Where do you have concerns? How can you improve alignment on targets?

OKRs for SaaS startups
Implementing a framework used by a global technology conglomerate at a small-scale start-up may seem daunting, after all at this stage of growth your goals will be wildly different, however, as you’ll come to find out the beauty of OKRs is that anyone can set measurable goals!
Future of SaaSEmma Bilardi

Framework 3: Track progress to align your team

You need operational rigor to track performance against targets. Implement systems to capture the right data and cascade insights across teams.

Most SaaS companies start by automating core processes like billing and revenue management. But collecting accurate data requires minimizing manual reconciliation.

The most effective way is an integrated platform that unites systems on a single data model. This eliminates duplication and ensures everyone uses the “single source of truth.”

With robust data capture, you can create powerful analytics like cohort reports, renewal forecasts, and driver-based models. These provide visibility into health metrics like MRR, churn, LTV:CAC - segmented however you want.

Shared dashboards can also align executives, managers, and reps on priorities. Setting variable forecasts helps teams understand how their day-to-day execution rolls up into targets. This fosters a “line of sight” on how each person impacts success.

For example, Springbuk, Intacct’s “Customer of the Year”, scaled efficiently by tracking metrics like:

- 7% churn improvement through better customer analytics

- 26% faster financial reporting through automation

- 19% gross margin improvement from forecast-driven decisions

They credit visibility into ICPs and billing models with millions in extra value creation. That’s the power of measurement!

Key takeaways

So there you have it! The three proven frameworks I've seen move the needle for thousands of SaaS companies.

These techniques have helped SaaS leaders like Springbuk improve churn, reporting speed, forecasting, and more. The impact is millions in increased value creation.

Now it's your turn to apply these frameworks. And remember: work ON the business, not just IN it.

Step back regularly to align your metrics, targets, and systems with strategic growth. Onward and upward!