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

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 metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

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

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The median annual unit churn for SAAS companies was 10% in 2016

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

More Growth Strategy Stats

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%”

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

The average SaaS company spends just 6 hours determining their pricing strategy

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

Women in western countries use the internet 17 percent more than their male counterparts

How to Reduce Churn

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

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.