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.

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More SaaS + Software Stats

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

56% treat “Existing Customer Renewals” as high priority

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

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

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

Negative Churn and Expansion Revenue

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

More Growth Strategy Stats

How To Make Pricing A Constant Process In Your Organization

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

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey