What Are SaaS Benchmarks and Why They Matter
Benchmarks give your data context. They reveal what "good" performance looks like, and help you identify weak points that could be slowing your growth.
In SaaS, where small inefficiencies compound over time, benchmarks help you:
- Prioritize the right KPIs
- Justify optimization efforts or hiring
- Identify lagging metrics before they hurt ARR
This guide focuses on 2025’s most relevant growth benchmarks for B2B SaaS companies.
Core KPIs Every B2B SaaS Should Track
Read: KPIs for SaaS Companies to Track & How to Calculate Each
You can’t improve what you don’t measure. Here are the key performance indicators every B2B SaaS company should have eyes on in 2025:
- Customer Acquisition Cost (CAC): Total cost to acquire a customer
- Customer Lifetime Value (LTV): Revenue generated per average customer
- Churn Rate: Percentage of customers lost over time
- Payback Period: Time to recoup CAC
- Net Revenue Retention (NRR): Revenue from existing customers
- Activation Rate: % of users who reach "first value"
These metrics form the foundation of your growth model.
Benchmarks by Funnel Stage
Read: The SaaS Funnel: How to Define Your Customer Journey
Acquisition Benchmarks
- Website conversion rate (CVR): 1.5–3%
- Cost-per-lead (CPL): $150–400
- Demo-to-close rate: 20–30%
Activation Benchmarks
- Trial-to-activation: 20–45%
- % of users reaching "Aha!" moment: 25–50%
Retention Benchmarks
- Monthly churn: <6% (SMB), <3% (mid-market)
- Net revenue retention (NRR): 95–115%
Lead Conversion Rate Benchmarks
Read: What is the Average Lead Conversion Rate for SaaS
Across SaaS, the average visitor-to-customer conversion rate is 3–5%. High performers can reach 8% or more.
By traffic source:
- Organic search: 4–6%
- Paid search: 2–4%
- Referral: 7%+
If you're below 3%, it's a sign to audit your funnel for CRO or lead nurturing gaps.
SaaS Growth Ranges by Revenue Stage
<$1M ARR
- Focus on product-market fit
- Volume varies; expect wide KPI swings
$1M–$10M ARR
- Optimize CAC, onboarding, and retention
- Growth must become more efficient
$10M+ ARR
- Expansion revenue and LTV become critical
- Emphasis on reducing churn and scaling product suite
Common Benchmark Pitfalls to Avoid
- Using vanity metrics instead of actionable KPIs
- Comparing yourself to companies in different stages
- Tracking too many metrics without prioritization
Benchmarks should guide strategy, not overwhelm it.
How to Use Benchmarks to Prioritize Growth
Benchmarks alone don’t build strategy — they help you spot where to focus.
Ask yourself:
- Where are we furthest below the average?
- What improvements could give us the biggest return?
- What high-impact areas are we not tracking?
Use this guide to identify gaps, set realistic goals, and outperform the average.
