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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

How To Make Pricing A Constant Process In Your Organization

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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 fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

More Growth Strategy Stats

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

They may forget what you said, but they will never forget how you made them feel.

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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

The average SaaS company spends just 6 hours determining their pricing strategy

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

At Facebook, 15 percent of tech roles are staffed by women

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