Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

What we have found is that each of these lead sources tends to saturate over time, and produce less leads for more dollars invested. As a result, SaaS companies will need to be constantly evaluating new lead sources that they can layer in on top of the old to keep growing.

Since the conversion rates and costs per lead vary quite considerably, it is important to also measure the overall ROI by lead source.

Growing leads fast enough to feed the front end of the funnel is one of the perennial challenges for any SaaS company, and is likely to be one of the greatest limiting factors to growth. If you are facing that situation, the most powerful advice we can give you is to start investing in Inbound Marketing techniques (see Get Found using Inbound Marketing). This will take time to ramp up, but if you can do it well, will lead to far lower lead costs, and greater scaling than other paid techniques. Additionally the typical SaaS buyer is clearly web-savvy, and therefore very likely to embrace inbound marketing content and touchless selling techniques.

More SaaS + Software Stats

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

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

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The median annual unit churn for SAAS companies was 10% in 2016

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

55% of SaaS companies rate Customer Retention as the key metric to measure

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

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

More SaaS & Tech Growth Strategy Stats

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

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

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

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

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

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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