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

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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

More SaaS + Software Stats

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

Negative Churn and Expansion Revenue

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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 TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

How To Make Pricing A Constant Process In Your Organization

More Growth Strategy Stats

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Women in western countries use the internet 17 percent more than their male counterparts

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

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

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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”

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

High-growth companies generate 60% fewer sales opportunities than low-growth companies

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

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