The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Tech Services
Statistic in Growth Strategy

Statistic Info

Cost of Customer Acquisition is About 11 Months’ of Revenue The median startup spends about 92% of first year average contract value on the sale, implying an 11 month payback period on the CAC. An additional months’ revenue is required to upsell a customer and about the same is required to close a renewal.

Tomasz Tonguz

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Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

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.

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

Women in western countries use the internet 17 percent more than their male counterparts

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

More 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 SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

Google only has a 30 percent female workforce

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

Three uses for the SaaS Guidelines

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

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