KeyBanc released its 10th annual SaaS survey which was conducted in 2019 to provide useful operational and financial benchmarking data to executives and investors in SaaS companies.
As we read through the survey results, we've pulled out some key statistics that we reference with our clients on a regular basis. This type of benchmarking allows organizations to understand where they might sit in the market, albeit industry, complexity, maturity, etc. still need to be considered.
It costs you $0.78 to upsell a customer and costs you $0.50 to expand a customer; meanwhile, it costs you $1.34 to acquire a new customer. This trend continues to be clear: the LTV of a customer in a SaaS model is predicated on your ability to provide a proper customer experience and value.
On average with a blended CAC ratio and considering gross margin, it takes an organization roughly 17 months for a payback period. That increases to 20 months when you solely consider new customers. Have you planned out the first 20 months of your customer journey?
The media gross dollar churn rate is 12.9%, as you get contract sizes that eclipse $100k then your median gross dollar churn drops to 9.8%.
There are more nuggets to be found throughout the report, but these are referenced quite often as we engage with customers. The data continues to support: