Statistic Info

To study churn, we need to look at a particular group of customers that signed up in a particular time period. We refer to these groups as cohorts. So you might have a Jan 2014 cohort which is comprised of all the customers that signed up in Jan 2014. We will then want to track how many customers we retain, and how the revenue for each cohort evolves over time. Here is a graph that shows what happens to the number of customers in a particular cohort over several years with three different monthly Customer Churn Rates.

For Entrepreneurs.com

More SaaS + Software Stats

Companies with longer contracts (2+ years) reported the lowest annual unit churn

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

More Growth Strategy Stats

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

56% treat “Existing Customer Renewals” as high priority

How Often Should The Pricing Committee Be Meeting And Making Changes?

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

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

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

80% of venture capital investments take place in the enterprise

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million