SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
More than two thirds of SAAS companies experienced annual churn rates of 5% or higher
Customer Segmentation analysis will help point out which are your most profitable segments
Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
Customer Segmentation analysis will help point out which are your most profitable segments
SaaS IPOs have more than doubled over the last 12 years
Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)
Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
36% of SaaS businesses managed to reduce their revenue churn over the last 12-months
Cloud application services (SaaS) to reach $126 billions by the end of 2021