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

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

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.

More SaaS + Software Stats

The best place to hide a dead body is page 2 of Google search results.

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

SaaS IPOs have more than doubled over the last 12 years

Cloud-hosted applications have a 99% uptime

More SaaS & Tech Growth Strategy Stats

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

The very best SAAS business has a negative churn rate and will have a Dollar 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

At Twitter, 10 percent of tech roles are staffed by women

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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.

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

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

73% of organizations indicated nearly all their apps will be SaaS by 2021