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

Annual trends suggest that metrics such as customer retention cost, customer health, and customer lifetime value are the next big metrics respondents plan to track. Which Metrics Do You Plan To Track? Customer acquisition cost Conversion rates (free to paying) # of new trial or free signups Website unique visitors Customer retention cost Customer health Customer Lifetime Value (CLV) Net Promoter Score (NPS)

SaaS & Tech Growth Strategy Articles

• Accelerating Your B2B Sales Growth with Free Promotion
  Accelerating Your B2B Sales Growth with Free PromotionWhile every business is different, they all have the same goal: to get sales. The best businesses don’t stop there, though. They are interested in drastically increasing sales so that they can scale their business. And if you want your company to still be around in 10-20 years, […]
• Go To Market Strategies for Tech Consulting Services
  The survival of your tech consulting business depends largely on having a working go-to-market strategy that oversees the successful launch of your services.
• Everything You Need to Know About SaaS Affiliate Programs and How to Implement it Into Your Product-Led Growth Strategy.
  SaaS Affiliate Programs: Everything You Need to Know About and How to Implement it Into Your Product-Led Growth Strategy.Generating trial users and acquiring customers for your SaaS business can be a frustrating challenge. If you're looking for new ways to grow your business, you may have heard of affiliate marketing and wondered how it can […]
• How Technology Companies Can Leverage Focused Niche Markets
  How B2B SaaS Companies Can Leverage Focused Niche MarketingAs the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other's throats all the time for survival. It's all about 'survival of the fittest. […]
• Segmentation, Targeting, and Positioning
  If you try to target everyone you end up not reaching anyone.
• How To Get a Head Start on Marketing Your Product
  When developing a new product or service many people don’t think to begin their marketing ahead of time. Doing this can greatly increase your chances for success. In this insight Andy shares a few ways you can get your product out to your audience before it launches. Did you like this insight? Make sure you […]
• 13 Strategies to Boost SaaS User Retention and Renewals
  Improving your retention rate can mean the difference between growing your company and running it into the ground. Read specific strategies you can use to improve your SaaS retention rate.
• SaaS Sales Funnel
  The SaaS Sales FunnelWe're breaking down how to build a funnel for maximum growth.Every step in the funnel is a chance to win or lose customers.So, let's explore the SaaS Customer Journey from prospect to evangelist and see how to improve top-line revenue through acquisition as well as retention; and ultimately evangelism. TABLE OF CONTENTSOverviewPT.1  Focus […]
• Blue Ocean Strategy Developing Value Propositions

SaaS + Software Stats

• In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%
• At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
• It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR
• Companies with longer contracts (2+ years) reported the lowest annual unit churn
• 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.
• The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
• 80% of venture capital investments take place in the enterprise
• It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue
• In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

SaaS & Tech Growth Strategy Stats

• Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues
• Customer Segmentation analysis will help point out which are your most profitable segments
• Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc
• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel
• The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
• 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%”
• High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
• The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers