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

SaaS + Software
Statistic in Growth Strategy

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.

InsightSquared

More SaaS + Software Stats

56% treat “Existing Customer Renewals” as high priority

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

Is your SaaS business viable?

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

More Growth Strategy Stats

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Women in western countries use the internet 17 percent more than their male counterparts

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

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

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Cloud-hosted applications have a 99% uptime

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