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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

54% treat upselling and add-on sales as high priority

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

More Growth Strategy Stats

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

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

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)