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

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.

More SaaS + Software Stats

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

Improve Your Pricing Schedule And Turn More Profit

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Five critical enablers of growth in act one

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

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

Very few software companies grow beyond $1 billion in revenues