Statistic Info

This has a huge impact on unit economics and begins to explain why winning companies place such a large focus on upsells as they mature. The bigger your customer base, the bigger the opportunity to move the needle through upsells.

Upsells aren’t always easy, and depending on the dynamics of your business model they may not even seem like an option. I believe the average company focuses so much on growth through new accounts because that path seems larger, more obvious, and, frankly, easier. But, as we all know, oftentimes the hard thing to do and the right thing to do are one in the same.

RJMetrics

More SaaS + Software Stats

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

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

80% of venture capital investments take place in the enterprise

56% treat “Existing Customer Renewals” as high priority

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

How To Make Pricing A Constant Process In Your Organization

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

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

More Growth Strategy Stats

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

Three uses for the SaaS Guidelines

80% of venture capital investments take place in the enterprise

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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