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It is often worth providing good financial incentives in the form of discounts to encourage this behavior. The metric that we use to track how well your sales force is doing in this area is Months up Front.

Getting paid more upfront usually also helps lower churn. This happens because the customer has made a greater commitment to your service, and is more likely to spend the time getting it up and running. You also have more time to overcome issues that might arise with the implementation in the early days. Calculating LTV and CAC

The Metric “Months up Front” has been used at both HubSpot and NetSuite in the past as a way to incent sales people to get more paid up front when a new customer is signed. However asking for more money up front may turn off certain customers, and result in fewer new customers, so be careful how you balance these two conflicting goals.

For Entrepreneurs.com

More SaaS + Software Stats

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

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

More Growth Strategy Stats

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

A 1% increase in pricing strategy yields an average 11% increase in profit

Internet Sales strategies have a significantly lower CAC of just $0.42

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

They may forget what you said, but they will never forget how you made them feel.

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

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x