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There are multiple ways where a business can improve and grow with the help of SaaS products. SaaS does not only make the service and products more accessible to the users but it is also a significant factor to generating more sales and improving customer satisfaction.

More SaaS + Software Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

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

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.

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

More Growth Strategy Stats

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.