Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

SaaS & Tech Growth Strategy Articles

• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• Sharing Your Vision With Your Customers
  How can you share your vision with your customers? Andy shares his recommendations on bridging the customer gap.
• What Is MRR
  The simple answer is that MRR is your Monthly Recurring Revenue and one of the key metrics that SaaS companies use to evaluate success.
• Creating A Strategic Marketing Approach for Software & Technology Companies
  The most successful marketing campaigns are executed with a clear vision and goal.
• 10 Reasons Your Customers Are Churning
  Churn is a death knell for any business. Make sure you aren't making any of these common reasons your customers are churning.
• 7 Ways to Use Sales Portals for Killer Closing
  7 Ways to Use Sales Portals for Killer ClosingA sales portal is a digital room or platform that collects and provides information, tools, and resources to help salespeople close more deals. Sales portals provide a centralized platform for sales teams to access the resources they need to do their jobs efficiently. These rooms can significantly […]
• 13 Strategies to Boost SaaS User Retention and Renewals
  Improving your retention rate can mean the difference between growing your company and running it into the ground. Read specific strategies you can use to improve your SaaS retention rate.
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.
• Blue Ocean Strategy Developing Value Propositions

SaaS + Software Stats

• 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 median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost
• As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth
• 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
• Growing faster has twice as much impact on share price as improving margins
• High-growth companies generate 60% fewer sales opportunities than low-growth companies
• 73% of organizations indicated nearly all their apps will be SaaS by 2021
• If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer
• 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

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
• If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
• It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue
• Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem
• Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.
• At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
• They may forget what you said, but they will never forget how you made them feel.
• The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers