Statistic Info

There’s a lot to pay attention to when measuring the growth trajectory of your SaaS business. Are you increasing LTV while keeping CAC down? Is your customer acquisition rate greater than your customer churn rate? Do you distinguish between monthly recurring revenue and committed monthly recurring revenue?

Answering these questions is no easy task-SaaS metrics are extremely nuanced, and it can be hard to figure out exactly how to get the most complete and realistic understanding of your company’s growth, even if you have a few Harvard MBA’s on hand to model everything out.

InsightSquared

More SaaS + Software Stats

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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

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

56% treat “Existing Customer Renewals” as high priority

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

More Growth Strategy Stats

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

Negative Churn and Expansion Revenue

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

80% of venture capital investments take place in the enterprise

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

Is your SaaS business viable?

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews