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

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

The best place to hide a dead body is page 2 of Google search results.

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%

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

How To Make Pricing A Constant Process In Your Organization

Growing faster has twice as much impact on share price as improving margins

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

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

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

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56% treat “Existing Customer Renewals” as high priority

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

Women in western countries use the internet 17 percent more than their male counterparts

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

SaaS solutions have the highest security features with 95% security failures due to human error

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

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

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

Customer Segmentation analysis will help point out which are your most profitable segments