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

SaaS + Software
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Two immediate actions that are suggested by this analysis are:

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

SaaS IPOs have more than doubled over the last 12 years

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

How to Reduce Churn

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

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

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