Statistic Info

The SaaS landscape is ever changing, and its crucial for businesses to evolve their strategies and tactics -but without objective data on what works and what doesn’t, shifting strategies would be mere conjecture.

HubSpot

More SaaS + Software Stats

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

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

SaaS organizations are now operating in over 100 countries

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

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

More Growth Strategy Stats

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

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

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

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

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

Cloud application services (SaaS) to reach $126 billions by the end of 2021