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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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