Transforming Your B2B SaaS Business with Data: From Reactive to Proactive with Metrics That Matter

Dec 5, 2024

3 min read

Imagine this data sh*tshow:

Sales Rep: "I'm not sure if we're going to hit forecast this month."

Sales Leader: “Oh, really? How much do you think we'll miss by?”

Sales Rep: “No, like, I literally don't know if we're going to come in under or over forecast. I don't have a full view of the pipeline."

This scenario is one I have witnessed more than I'd like to admit. When data is scattered across multiple spreadsheets and local files, teams are left guessing instead of strategizing.

The good news? A few small, deliberate changes can make all the difference. You don’t need an enterprise-grade solution to start improving your process. Tools like Google Sheets or Excel can work wonders if you use them well. Start by setting up a clear, consistent process for data entry across your team. Define key metrics to track, and automate where possible.

By focusing on the right data, you can shift from "I don't know" to "Here's the plan." Here are the critical metrics to get you started:

Metrics That Drive Proactive Strategies

Pipeline Health
What to Track: Total deal volume, deal size, weighted pipeline value (based on probability to close), and aging of opportunities.

Why It Matters: Understanding where deals are in the pipeline and how long they’ve been there helps identify bottlenecks and areas needing immediate attention.

Deal Velocity
What to Track: Average time taken for deals to move through each stage of the sales cycle.
Why It Matters: Faster deal cycles mean quicker revenue realization and better alignment between sales and finance.
Conversion Rates
What to Track: Lead-to-opportunity and opportunity-to-win conversion rates by channel or persona.
Why It Matters: Pinpointing high-performing segments or campaigns allows sales teams to double down on what’s working.
Opportunity demographics
What to Track: Industry, company size, geography, persona
Why It Matters: Pinpointing high-performing segments or campaigns allows sales teams to double down on what’s working.
Churn and Expansion Metrics
What to Track: Monthly churn rate, net revenue retention (NRR), and upsell/cross-sell performance.
Why It Matters: For SaaS businesses, retaining and expanding revenue is often more cost-effective than acquiring new customers.
Forecast Accuracy
What to Track: Variance between forecasted and actual revenue.
Why It Matters: A reliable forecast builds trust with leadership and enables better resource allocation. For CFOs, it ensures alignment with financial planning.

Once your team begins tracking these metrics, it’s likely they’ll outgrow the quick-and-dirty spreadsheet solution. At this point, it’s time for the big question: Buy or build?

Buy vs. Build: Choosing the Right Solution

In most cases, buying an out-of-the-box solution is the better choice. I’ve seen too many teams get caught up in the allure of custom builds, only to end up stuck in a maintenance nightmare. They spend all their time fixing bugs instead of improving the product.

Sure, buying can come with some sticker shock, but when you factor in the hours spent on engineering maintenance and refactoring, it’s often the more cost-effective option. Leaders need to think beyond the upfront cost and consider the multi-year investment.

With the right metrics and tools in place, your team’s conversations can finally evolve:

Reactive: “Are we hitting forecast?”
Proactive: “We’re exceeding forecast, so let’s allocate resources to test this new target market."

This proactive mindset helps sales leaders spend more time fine-tuning processes and coaching their teams, instead of putting out fires. It also gives CFOs the confidence to plan better and allocate budgets more accurately, making sure the money is going where it matters most.

And the best part?

You don’t need to overhaul your entire tech stack overnight. Start with small, deliberate changes—clean up your data, focus on key metrics, and automate where possible.

As you scale, investing in the right tools and processes will transform how your team operates, positioning your business for sustained growth.

With clear metrics and proactive strategies, you’ll move from uncertainty to opportunity—and lead your B2B SaaS business into a data-driven future.