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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
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
In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%
The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel
55% of SaaS companies rate Customer Retention as the key metric to measure
Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.
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
Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem
Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing
Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015
SaaS businesses face significant losses in the early years (and often an associated cash flow problem)
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%”
Companies with longer contracts (2+ years) reported the lowest annual unit churn
If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer
In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.
The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher
The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn
Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense