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As expected, companies that are focused mainly on enterprise sales have higher levels of professional services. In comparison with last year’s survey, attach rates ticked down for Enterprise and SMB (2015: Enterprise 26%, SMB 18%).

For Entrepreneurs.com

More SaaS + Software Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

After $10M in ARR, the median growth rate slows to just under 50%

More Growth Strategy Stats

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

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

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