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

From Totango
Statistic in SaaS & Tech Growth Strategy

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 solutions have the highest security features with 95% security failures due to human error

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

The average 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

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

More SaaS & Tech Growth Strategy Stats

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

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.

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

When venture capitalists participate in seed rounds, the average round size is 3x larger

Google only has a 30 percent female workforce

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

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