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

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

More SaaS + Software Stats

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

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%)

Is your SaaS business viable?

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

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

More Growth Strategy Stats

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)

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

80% of venture capital investments take place in the enterprise

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

Invention is 10% inspiration and 90% perspiration.