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

Statistic Info

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

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.

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

How To Make Pricing A Constant Process In Your Organization

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

More Growth Strategy Stats

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

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

Google only has a 30 percent female workforce

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

Improve Your Pricing Schedule And Turn More Profit

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)

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