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

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Another key value of having these conversion rates is the ability to understand the implications of future forecasts. For example, lets say your company wants to do $4m in the next quarter. You can work backwards to figure out how many demos/trials that means, and given the sales productivity numbers – how many salespeople are required, and going back a stage earlier, how many leads are going to be required. These are crucial planning numbers that can change staffing levels, marketing program spend levels, etc.

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Improve Your Pricing Schedule And Turn More Profit

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

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

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

How to Reduce Churn

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Google only has a 30 percent female workforce

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

Negative Churn and Expansion Revenue

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