If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

From InsightSquared
Statistic in SaaS & Tech Growth Strategy

There’s a lot to pay attention to when measuring the growth trajectory of your SaaS business. Are you increasing LTV while keeping CAC down? Is your customer acquisition rate greater than your customer churn rate? Do you distinguish between monthly recurring revenue and committed monthly recurring revenue?

Answering these questions is no easy task-SaaS metrics are extremely nuanced, and it can be hard to figure out exactly how to get the most complete and realistic understanding of your company’s growth, even if you have a few Harvard MBA’s on hand to model everything out.

More SaaS + Software Stats

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

SaaS solutions have the highest security features with 95% security failures due to human error

73% of organizations indicated nearly all their apps will be SaaS by 2021

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

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

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

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

More SaaS & Tech Growth Strategy Stats

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

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

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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