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

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.

More Tech Services Stats

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Customer Segmentation analysis will help point out which are your most profitable segments

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

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

More Growth Strategy Stats

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

SaaS IPOs have more than doubled over the last 12 years

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

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

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.

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%”

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

They may forget what you said, but they will never forget how you made them feel.