Statistic Info

•PLG companies use product to drive user acquisition, expansion and retention

•PLG products are extremely sticky -people log in regularly and users share the products with colleagues and friends

•These businesses tend to boast amazing NPS scores

•The virality of user adoption and significant goodwill built with users enables PLG business to successfully (and efficiently) accelerate growth via cross-sell / upsell over time


HubSpot

More SaaS + Software Stats

Customer Segmentation analysis will help point out which are your most profitable segments

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

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

Analyzed 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

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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%”

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)