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

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

Software and online services are in a period of dizzying growth

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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