GTM KPIs You Should Track Before You Scale Your SaaS
Most SaaS startups think building a product and finding PMF is enough. But without the right metrics in your go-to-market (GTM) phase, you’ll scale inefficiencies instead of growth. Here are the core KPIs to track before you pour fuel on the fire.
1. Customer Acquisition Cost (CAC)
Why it matters: CAC tells you how much you’re spending to acquire each customer. High CAC with poor payback means you’ll burn through budget before you see revenue.
Formula: (Sales + Marketing Costs) / # of Customers Acquired
What to look for: Keep CAC low and stable, especially before scaling paid channels.
Understanding your GTM cost structure helps identify how CAC can vary across channels.
2. CAC Payback Period
Why it matters: This shows how long it takes to recoup your customer acquisition cost.
Formula: CAC / Monthly Gross Margin per Customer
What to look for: Ideal is <12 months. If you’re PLG, it should be even shorter.
3. Conversion Rate from Lead to Customer
Why it matters: Without knowing how well leads convert, your top-of-funnel metrics are just noise.
What to look for: Benchmark conversion at each funnel stage and optimize the bottlenecks.
4. Time to First Value (TTFV)
Why it matters: Especially for PLG motions, fast time-to-value increases trial conversion and retention.
What to look for: Track how long it takes new users to experience core product value. The shorter, the better.
5. Sales Cycle Length
Why it matters: Longer cycles slow down revenue recognition and increase the risk of drop-offs.
What to look for: Know the average days from first touch to close. Use this to forecast sales ramp and team capacity.
6. Retention Rate (or Churn)
Why it matters: Retention drives LTV, virality, and funding. No retention = no foundation.
What to look for: Start with 30-day retention, then track 60/90. Optimize activation first.
7. LTV to CAC Ratio
Why it matters: The ultimate unit economics test.
Formula: Customer Lifetime Value / CAC
What to look for: SaaS standard is 3:1. Below that, you may not be profitable. This ties directly into the success of your overall GTM strategy.
TL;DR: Scale Signals Checklist
Before scaling:
- CAC is stable or decreasing
- CAC payback is under 12 months
- Conversion rates are benchmarked
- Time-to-value is improving
- Sales cycle is predictable
- Retention is tracked and healthy
- LTV:CAC is 3:1 or better
Want to build a GTM strategy that tracks what matters? Explore our SaaS GTM framework.
Need help defining your ICP before you scale? Start here.