The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Statistic Info

Inside Sales Driven Companies Grow Fastest Inside sales driven distribution companies grow about 40% faster than companies using field sales, web sales or channel, or about 37% revenue growth per year.

Price the Product Between $1k to $25k Annually to Optimize Growth Companies with contract sizes of $1k to $25k grow the fastest, about 26% faster or 35% y/y. I suspect there are two reasons to support this pattern. First, purchases under $25k tend to require fewer approvals which decreases sales cycle. Second, these accounts can be closed by inside sales reps which are far less expensive than field sales. On the same sales investment, a startup may be able to hire three or four inside sales reps for each field sales rep.

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 SaaS + Software Stats

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

54% treat upselling and add-on sales as high priority

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

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

When venture capitalists participate in seed rounds, the average round size is 3x larger

Is your SaaS business viable?

More Growth Strategy Stats

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

At Twitter, 10 percent of tech roles are staffed by women

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

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

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion