Quote Info

Account Churn is very important because it gives a very clear percentage of the customers that are leaving you. It takes away the bias from larger accounts so that you aren’t left with one large customer paying for all of your revenue – which is a dangerous situation to be in

InsightSquared

More SaaS + Software Stats

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

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

How To Make Pricing A Constant Process In Your Organization

Is your SaaS business viable?

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

More Growth Strategy Stats

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

At Facebook, 15 percent of tech roles are staffed by women

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

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

Improve Your Pricing Schedule And Turn More Profit

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.

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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