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

From HubSpot
Quote in SaaS & Tech Growth Strategy

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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%”

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

80% of venture capital investments take place in the enterprise

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

Software and online services are in a period of dizzying growth

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

More SaaS & Tech Growth Strategy Stats

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

80% of venture capital investments take place in the enterprise

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

SaaS IPOs have more than doubled over the last 12 years

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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