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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 fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

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

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

The median annual unit churn for SAAS companies was 10% in 2016

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

More Growth Strategy Stats

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Negative Churn and Expansion Revenue

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

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

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

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

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

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

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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