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You need to be thinking about how the length of each contract will affect churn in a given period when you calculating renewal rate.

InsightSquared

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

Internet Sales strategies have a significantly lower CAC of just $0.42

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

Negative Churn and Expansion Revenue

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

56% treat “Existing Customer Renewals” as high priority

Software and online services are in a period of dizzying growth

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Is your SaaS business viable?

September 19, 2019 Seminar

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