You can’t grow what you don’t measure

These are the KPIs that matter most and how local media companies can start using them ...”

Todd Handy is a growth architect and transformation strategist who’s helped reshape the digital media, AdTech and SaaS landscapes

An often-quoted business axiom is “Not everything that matters can be measured, and not everything measured matters.”

We’ll paraphrase it as, “You can’t grow what you don’t measure.” Most local media companies are still flying blind when it comes to the metrics that actually predict and drive revenue health.

SaaS companies have long relied on a focused set of growth and retention KPIs to guide decisions, align teams and optimize the customer journey. These metrics are also directly applicable to media businesses that want to operate with more discipline, predictability and long-term value.

These are the KPIs that matter most and how local media companies can start using them:

Customer Acquisition Cost (CAC)

• What it is:
  Total cost of acquiring a new customer (for media, an advertiser). Includes sales team expenses, marketing spend, proposal generation, onboarding, etc.

• Formula:
  CAC = Total Sales & Marketing Costs ÷ Number of New Advertisers

• Why it matters:
  If you don’t know your CAC, you don’t know how efficiently you’re growing. Media companies often spend significant time and resources closing one-off deals without ever tracking how much that acquisition actually cost, or if it was profitable.

Lifetime Value (LTV)

• What it is:
  Total revenue you earn from an advertiser over the length of the relationship.

• Formula:
  LTV = Average Monthly Spend × Average Advertiser Lifespan (in months)

• Why it matters:
  If your advertisers only spend once, your LTV is limited. Increasing LTV is about retention, upsell and deepening relationships (and growing revenue, increasing margins, etc.).

Monthly and Annual Recurring Revenue (MRR & ARR)

• What it is:
  Predictable, contractually committed revenue that recurs each month/year.

• Formulas:
  MRR = Average Value of Monthly Contracts × Number of Advertisers
  
  ARR (for monthly billing)
  ARR = MRR × 12
  
  ARR (for annual billing)
  ARR = Average Value of Annual Contracts × Number of Advertisers

• Why it matters:
  This is how SaaS companies forecast growth and revenue stability. For media, MRR comes from recurring programs  — monthly advertiser packages or bundles that are built to renew, not reset or end.

Churn Rate

• What it is:
  Percentage of advertisers who stop buying from you during a given period.

• Formula:
  Churn = (# of Advertisers Lost ÷ Total Advertisers at Start of Period) × 100

• Why it matters:
  High churn = revenue instability. SaaS companies fight churn with onboarding, CS and MBRs/QBRs. Media should follow suit.

Gross Revenue Retention (GRR) and Net Revenue Retention (NRR)

• What they are:
  GRR measures recurring revenue retained from existing advertisers (ignoring upsells).
  
  NRR includes expansion and upgrades, showing overall account health.

• Formulas:
  GRR = ((Starting Revenue from Existing Accounts – Churned Revenue) ÷ Starting Revenue) × 100
  
  NRR = ((Starting Revenue + Expansion Revenue – Churned Revenue) ÷ Starting Revenue) × 100

• Why they matter:
  If your NRR is over 100%, you’re growing from your base, even if you don’t close new business. This is how SaaS companies scale predictably.
  
  For context, here are some SaaS industry comps:
  In SaaS, a good GRR is 90–95%+ and a strong NRR is 110–120%+.

• GRR Benchmarks
  Top-performing SaaS companies: GRR above 95%
  
  Median GRR: Around 90%
  
  Acceptable for SMB-focused SaaS: 80–90% (higher churn is typical in SMB segments)
  
  Enterprise SaaS: Aim for 90–95%+ GRR
  
  GRR below 85% is a red flag and signals issues with customer satisfaction or product fit. (Source: wudpecker.io)

• NRR Benchmarks
  Top-performing SaaS companies: NRR above 120%
  
  Median NRR: 106%
  
  Enterprise SaaS: 110–120%+ is considered excellent.
  
  SMB SaaS: 100–110% is solid, but strive for higher.
  
  NRR above 100% means your expansion revenue (upsells, cross-sells) more than offset churn, fueling organic growth. NRR below 100% means you’re shrinking within your existing base.   (Source: wudpecker.io & withorb.com)

• “GRR is your ‘floor’— it shows how well you keep what you’ve sold. NRR is your ‘engine’ — it shows if you’re growing revenue from your base.” (Source: stripe.com)

Conversion Rate

• What it is:
  Percentage of leads or prospects that convert into paying advertisers.

• Formula:
  Conversion Rate = (Closed Deals ÷ Qualified Leads) × 100

• Why it matters:
  Sales teams need to know where drop-offs happen in the sales funnel. A low conversion rate may mean an unclear offer, pricing that’s off, or that trust hasn’t been built. As a KPI, conversion rate shows how effective your sales process is. For optimization, it helps identify bottlenecks or opportunities in your funnel. And, for benchmarking, it’s useful for comparing tactics, offers, channels or teams.

In the next article, we’ll discuss how to start using these metrics and review an audit to help you understand where you are and what you need to do to make the transformation to “SaaSify” your media company.

Todd Handy is a growth architect and transformation strategist who’s helped reshape the digital media, AdTech and SaaS landscapes. He’s led revenue, marketing, customer success, operations and transformation for companies including Deseret Digital Media, Beasley Media Group, MarketStar and Tout. As founder of Disruptive Impact, he partners with companies to reinvent their business models using proven frameworks and dual transformation principles. A frequent keynote speaker and LMA board member, Todd offers fractional leadership and advisory services to drive measurable, recurring revenue growth. Reach him at todd@disruptiveimpact.co.