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

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

SaaS organizations are now operating in over 100 countries

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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