Quote Info
This is because they have to invest heavily upfront to acquire the customer, but recover the profits from that investment over a long period of time. The faster the business decides to grow, the worse the losses become. Many investors/board members have a problem understanding this, and want to hit the brakes at precisely the moment when they should be hitting the accelerator.
In many SaaS businesses, this also translates into a cash flow problem, as they may only be able to get the customer to pay them month by month.
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More SaaS + Software Stats
Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
Three uses for the SaaS Guidelines
Companies with longer contracts (2+ years) reported the lowest annual unit churn
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
More Growth Strategy Stats
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
Customer Segmentation analysis will help point out which are your most profitable segments
Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013