Quote Info

Two immediate actions that are suggested by this analysis are:

  • Double down on your most profitable segments
  • Look at your less profitable segments and consider changes that would make them more profitable: lower cost marketing & sales approaches, higher pricing, product changes, etc. If nothing seems to make sense, spend less effort on these segments.
For Entrepreneurs.com

More SaaS + Software Stats

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

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

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

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

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Negative Churn and Expansion Revenue

More Conversion Optimization Stats

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