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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.

 

HubSpot

More SaaS + Software Stats

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

More Growth Strategy Stats

56% treat “Existing Customer Renewals” as high priority

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

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

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

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

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

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

September 19, 2019 Seminar

Driving Traffic To Generate Leads: Content Marketing, Paid Ads & SEO

If your business if starving for new leads but struggling with all of the noise, rising costs, and a rapidly changing landscape of the digital marketing world, this seminar will equip you with what you need to gain momentum and leave with an actionable gameplan.


Details + Registration