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Companies that are doing a good job of controlling churn and driving new revenue from existing customers are on the whole growing substantially faster than their peers. Companies still place priority on new customer acquisition Despite a shift in the metrics companies are tracking, priority and funding for customer renewals and upsell has not increased. This suggests that despite best intentions to focus on monetizing existing customers, day-to-day business realities make it di?cult for companies to shift priority and funding. SaaS metrics shifting focus toward existing customers This year more companies than ever are looking at metrics on existing customers such as customer lifetime value, revenue per user, product adoption, and customer health.

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More SaaS + Software Stats

Growing faster has twice as much impact on share price as improving margins

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

The median annual unit churn for SAAS companies was 10% in 2016

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

SaaS IPOs have more than doubled over the last 12 years

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

More Growth Strategy Stats

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

80% of venture capital investments take place in the enterprise

SaaS IPOs have more than doubled over the last 12 years

At Twitter, 10 percent of tech roles are staffed by women

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

Software and online services are in a period of dizzying growth

How to Reduce Churn