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

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The lower Quick Ratio for these larger, more mature companies is further proof that the Quick Ratio looks quite a bit different when used to evaluate young SaaS startups and more mature, steady-state companies.

More SaaS + Software Stats

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

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

How to Reduce Churn

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

More Growth Strategy Stats

Improve Your Pricing Schedule And Turn More Profit

How to Reduce Churn

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

How To Make Pricing A Constant Process In Your Organization

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

After $10M in ARR, the median growth rate slows to just under 50%

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR