Statistic Info

Companies that are doing a good job of controlling churn and driving new revenue from existing customers are on the whole growing substantially faster than their peers. Companies still place priority on new customer acquisition Despite a shift in the metrics companies are tracking, priority and funding for customer renewals and upsell has not increased. This suggests that despite best intentions to focus on monetizing existing customers, day-to-day business realities make it di?cult for companies to shift priority and funding. SaaS metrics shifting focus toward existing customers This year more companies than ever are looking at metrics on existing customers such as customer lifetime value, revenue per user, product adoption, and customer health.

Totango

More SaaS + Software Stats

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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

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

The median annual unit churn for SAAS companies was 10% in 2016

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

Is your SaaS business viable?

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

More Growth Strategy Stats

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

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%”

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

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

How To Make Pricing A Constant Process In Your Organization

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)