Statistic Info

The future of growth is product led. This isn’t merely the latest fad or buzzword. Data shows that companies leveraging a PLG strategy perform better on average -faster growth, higher margins, lower burn and stronger valuation multiples. As with many new operational strategies, OpenView believes product led growth will soon become the norm, making it table stakes for SaaS companies that want to win in their markets. What is your company doing to adapt to the product led growth revolution

HubSpot

More SaaS + Software Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

How to Reduce Churn

Software and online services are in a period of dizzying growth

More Growth Strategy Stats

Improve Your Pricing Schedule And Turn More Profit

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Customer Segmentation analysis will help point out which are your most profitable segments