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

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

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

More Growth Strategy Stats

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

80% of venture capital investments take place in the enterprise

A 1% increase in pricing strategy yields an average 11% increase in profit

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

They may forget what you said, but they will never forget how you made them feel.

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)