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

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.

SaaS & Tech Growth Strategy Articles

• Blue Ocean Strategy
  Today, Andy shares with us what a "Blue Ocean" strategy is and how to implement it in your business and marketing strategies. Blue Ocean StrategyA Red Ocean is an ocean where there's a lot of competition, a lot of people fighting and a lot of blood in the water, which makes it really hard to sell […]
• Go To Market Strategies for Tech Consulting Services
  The survival of your tech consulting business depends largely on having a working go-to-market strategy that oversees the successful launch of your services.
• 7 Ways to Use Digital Sales Rooms for Killer Closing
  7 Ways to Use Digital Sales Rooms for Killer ClosingA digital sales room is sales enablement platform that collects and provides information, tools, and resources to help salespeople close more deals. Digital sales rooms provide a centralized platform for sales teams to access the resources they need to do their jobs efficiently. These rooms can […]
• Accelerating Your B2B Sales Growth with Free Promotion
  Accelerating Your B2B Sales Growth with Free PromotionWhile every business is different, they all have the same goal: to get sales. The best businesses don’t stop there, though. They are interested in drastically increasing sales so that they can scale their business. And if you want your company to still be around in 10-20 years, […]
• What is EdTech? Get to Know The Emerging SaaS Field
  What is EdTech? Get to know the emerging field.EdTech is a rising industry in the SaaS world. Here is your guide to the internet's most burning EdTech questions.Explore the article:What is education technology (EdTech)?How can technology be used to enhance education?What are the benefits of using EdTech in the classroom?What are some popular EdTech tools […]
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.
• How To Get a Head Start on Marketing Your Product
  When developing a new product or service many people don’t think to begin their marketing ahead of time. Doing this can greatly increase your chances for success. In this insight Andy shares a few ways you can get your product out to your audience before it launches. Did you like this insight? Make sure you […]
• What Is MRR
  The simple answer is that MRR is your Monthly Recurring Revenue and one of the key metrics that SaaS companies use to evaluate success.
• SaaS Trends and Stats You Must Know in 2022
  SaaS Trends and Stats You Must Know in 2022SaaS in 2022 will be a year of growth and innovation with heavy focus on the customer experience. With the impact of COVID-19 on every area of business and consumer needs changing, the SaaS industry underwent radical but essential change throughout 2020 and 2021 To succeed, companies […]

SaaS + Software Stats

• The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn
• SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence
• More than 1/2 of SAAS companies increased their spending on customer retention last year
• The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel
• 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%”
• 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
• 73% of organizations indicated nearly all their apps will be SaaS by 2021
• 56% treat “Existing Customer Renewals” as high priority
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

SaaS & Tech Growth Strategy Stats

• 56% treat “Existing Customer Renewals” as high priority
• 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
• 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)
• 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.
• SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)
• The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%
• The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling
• 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%”
• Customer Segmentation analysis will help point out which are your most profitable segments