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.

From ForEntrepreneurs.com
Quote in SaaS & Tech Growth Strategy

A great way to understand any business model is to answer the following simple question:

Can I make more profit from my customers than it costs me to acquire them?

This is effectively a study of the unit economics of each customer. To answer the question, we need two metrics:

(How to calculate LTV and CAC)

Entrepreneurs are usually overoptimistic about how much it costs to acquire a customer. This probably comes from a belief that customers will be so excited about what they have built, that they will beat a path to their doors to buy the product. The reality is often very different!

More SaaS + Software Stats

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

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

55% of SaaS companies rate Customer Retention as the key metric to measure

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

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

54% treat upselling and add-on sales as high priority

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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

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

More SaaS & Tech Growth Strategy Stats

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 average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

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

Three uses for the SaaS Guidelines

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

How Often Should The Pricing Committee Be Meeting And Making Changes?

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