Quote Info

Pricing/Upsell/Cross Sell

  • Multi-axis pricing
  • Additional product modules (easier to sell more to existing customers than it is to sell to brand new customers)
For Entrepreneurs.com

More SaaS + Software Stats

Negative Churn and Expansion Revenue

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

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

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

More Growth Strategy Stats

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

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

55% of SaaS companies rate Customer Retention as the key metric to measure

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month