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)

Totango

More SaaS + Software Stats

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

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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 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

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

Software and online services are in a period of dizzying growth

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

More Growth Strategy Stats

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

SaaS IPOs have more than doubled over the last 12 years