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

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

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

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

SaaS IPOs have more than doubled over the last 12 years

When venture capitalists participate in seed rounds, the average round size is 3x larger

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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