55% of SaaS companies rate Customer Retention as the key metric to measure

From Totango
Statistic in SaaS & Tech Growth Strategy

SaaS company growth rates are strongly in?uenced by customer retention and upsell For the third year in a row, the survey indicates that the fastest growing SaaS companies have a signi?cantly better record on churn and upsell, underscoring the critical role of managing revenue from existing customers in the SaaS business model.

More SaaS + Software Stats

After $10M in ARR, the median growth rate slows to just under 50%

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

54% treat upselling and add-on sales as high priority

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Internet Sales strategies have a significantly lower CAC of just $0.42

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

More SaaS & Tech Growth Strategy Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)