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

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

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

More Growth Strategy Stats

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

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

SaaS organizations are now operating in over 100 countries

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

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

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

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

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%