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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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More SaaS + Software Stats

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

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

80% of venture capital investments take place in the enterprise

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

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

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

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

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

More Growth Strategy Stats

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Is your SaaS business viable?

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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