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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

Improve Your Pricing Schedule And Turn More Profit

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

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

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

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

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

More 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

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

56% treat “Existing Customer Renewals” as high priority

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

Invention is 10% inspiration and 90% perspiration.

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

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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%”

80% of venture capital investments take place in the enterprise