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

From InsightSquared
Statistic in SaaS & Tech Growth Strategy

They are, in other words, exactly the type of SaaS startup that you should look for when deciding where to invest.

And, as their high Quick Ratio implies, they have a great chance to continue growing quickly and healthfully, and eventually become one of those fabled SaaS companies with a run rate of more than $10 million.

More SaaS + Software Stats

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

55% of SaaS companies rate Customer Retention as the key metric to measure

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

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%

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

More SaaS & Tech Growth Strategy Stats

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

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

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

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