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The top SAAS companies have a LTV to CAC (the Cost to Acquire a typical Customer) ratio that is higher than 3

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The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

More Growth Strategy Stats

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

80% of venture capital investments take place in the enterprise

Negative Churn and Expansion Revenue

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.