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

Quote Info

Of course, any good marketing plan will include how it will be measured. Here are the key metrics that you should look to when gauging the marketing success of your SaaS.

MQL velocity

MQL velocity has been called “the most important metric in SaaS.” This is because though sales and pipeline forecasts are useful, they are lagging indicators hinging on both correct opportunity probability assignments and close dates. However, by looking at MQL velocity compared to lead commits, you can see forward-looking insights beyond a traditional pipeline report.

More SaaS + Software Stats

Improve Your Pricing Schedule And Turn More Profit

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

56% treat “Existing Customer Renewals” as high priority

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

How to Reduce Churn

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

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

More Growth Strategy Stats

After $10M in ARR, the median growth rate slows to just under 50%

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

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

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

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

At Twitter, 10 percent of tech roles are staffed by women

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