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

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

As an example, bigger customers are harder to sell to, but usually place bigger orders, and churn less frequently. We need a way to understand which of these are most profitable, and this requires us to segment the customer base into different types, and compute the unit economics metrics for each segment separately. Common segments are things size of of customer, vertical industry, etc.

Despite the added work to produce the metrics, there is high value in understanding the different segments. This tells us which parts of the business are working well, and which are not. In addition to knowing where to focus and invest resources, we may recognize the need for different marketing messages, product features. As soon as you start doing this segmented analysis, the benefits will become immediately apparent.

For each segment, we recommend tracking the following metrics:

More SaaS + Software Stats

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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

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

Software and online services are in a period of dizzying growth

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

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

SaaS organizations are now operating in over 100 countries

More SaaS & Tech Growth Strategy Stats

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

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

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

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

Google only has a 30 percent female workforce

When venture capitalists participate in seed rounds, the average round size is 3x larger