What is SaaS Metrics? — UK Software Development Guide

4 min readJune 2025ClickMasters Technical TeamReviewed by James Whitmore, CTO
what are saas metrics

Direct Answer

SaaS metrics are the key performance indicators used to measure the health and growth of a Software as a Service business. The most important SaaS metrics are: MRR (Monthly Recurring Revenue), ARR (Annual Recurring Revenue), Churn Rate (rate of customer cancellation), LTV (Lifetime Value of a customer), CAC (Customer Acquisition Cost), and NPS (Net Promoter Score).

Saas-metrics in the UK

UK SaaS businesses must instrument their products to capture these metrics from day one — they drive investor valuations and internal decision-making. UK GDPR considerations: customer analytics that constitute profiling for commercial purposes require a valid legal basis (legitimate interest is most commonly used for SaaS operational analytics, but marketing profiling may require consent). Cookie consent under PECR affects web analytics data quality — cookieless analytics or server-side tracking may be appropriate for UK GDPR-compliant SaaS products.

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