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

Statistic Info

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)

More SaaS + Software Stats

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

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

Three uses for the SaaS Guidelines

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

How Often Should The Pricing Committee Be Meeting And Making Changes?

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Is your SaaS business viable?

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 Bookings: Three Contributing Elements

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.

More Growth Strategy Stats

Revenue Churn vs Customer Churn – why are they different?

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

Very few software companies grow beyond $1 billion in revenues

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

At Facebook, 15 percent of tech roles are staffed by women

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 contrast, Internet Sales strategies have a significantly lower CAC of just $0.42

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

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale