7 Proven Ways To Increase Recurring Revenue In 2025
In 2025, the gap between SaaS winners and everyone else gets brutal. Recurring revenue is now the line between scaling up and stalling out.
Most founders hit a wall before £10m—growth slows, margins shrink, churn creeps up. The hard truth? Even great products struggle if you cannot increase recurring revenue fast enough.
This article gives you seven proven ways to break through. Each strategy is backed by hard numbers, real-world examples, and a no-nonsense 30-day playbook. You will see how to drive pipeline, pricing, win rate, and margin—without adding chaos or complexity.
Ready to see what is working now? Let us get started.
The Recurring Revenue Ceiling: Why Most Tech Founders Get Stuck
Scaling a SaaS, AI, or software business is brutal after the first million. Most founders feel the pressure as growth slows, margins shrink, and churn creeps in. To increase recurring revenue, you need to break through the ceiling that stops so many. Let’s look at why most never make it past £10m—and what you can do differently.
The £1m–£10m Trap: Why Growth Stalls
Data shows that 73% of SaaS companies plateau between £1m and £10m ARR. The symptoms are clear: pipeline growth flattens, pricing comes under pressure, churn rises, and the founder becomes the bottleneck in key deals.
Stripe’s latest data confirms that MRR growth slows without regular pricing and packaging resets. Even a 1% monthly churn rate can quietly erode your base. Over a year, this equates to a 12% loss in ARR—enough to wipe out new sales gains.
| Churn Rate (Monthly) | ARR Lost in 12 Months |
|---|---|
| 1% | 12% |
| 2% | 22% |
| 4% | 39% |
The real cost is bigger than lost revenue. Teams burn out chasing targets they can’t hit. Focus dilutes as urgent issues consume leadership attention. If you want to increase recurring revenue, you must first break this cycle. For deeper insight into moving past these plateaus, see How to Scale a Business.
The Commercial Model: More Than Just Sales
Recurring revenue is not just about selling more. It’s built on product-market fit, clear pricing, sharp ICP targeting, and a disciplined operating rhythm. Many founders rely too much on their own sales efforts, lack clarity on their best customer profile, or miss upsell and cross-sell opportunities.
Commercial model flaws often show up as slow pipeline, weak expansion, and compressed margins. Pricing discipline is a powerful lever. One SaaS firm with £2m ARR shifted from flat-rate to tiered pricing and unlocked 30% growth in just 90 days.
To increase recurring revenue, you need a model that scales without founder heroics. Align your product, pricing, and go-to-market to the customers who deliver the highest margin and retention.
The Kill List: What to Stop Doing
If you want to increase recurring revenue, you also need to stop doing what is holding you back. Here’s a kill list for founders:
- Stop chasing every lead—focus only on ICP fit.
- Kill legacy products that drain resources or distract the team.
- End the founder bottleneck in deals and renewals.
- Drop vanity metrics and focus on net revenue retention and LTV/CAC.
By cutting these habits, you free up time and resources to focus on what really moves the needle. You can’t scale with deadweight in your commercial model.
Playbook: 7–30 Day Reality Review
A 30-day reality review is the fastest way to find out where you stand and where to act first. To increase recurring revenue quickly, start with this playbook:
- Pull core data: cohort retention, pricing by segment, win/loss by ICP.
- Map upsell and cross-sell gaps—where are you missing expansion?
- Identify pricing leaks and margin drains.
- Score your pipeline and customer base for fit and value.
- Set a weekly review cadence and assign clear owners for follow-up.
In just 7–30 days, you’ll uncover fast wins and bigger gaps. This clarity lets you prioritise the right actions, build momentum, and avoid adding chaos as you scale.
7 Proven Ways To Increase Recurring Revenue In 2025
Recurring revenue is the lifeblood of SaaS, AI, and software growth. If you want to increase recurring revenue in 2025, you need proven, tactical strategies that cut through noise and deliver results fast.
Below are seven evidence-backed ways to increase recurring revenue, each with data, a 7–30 day playbook, and real-world examples. These are not theory. They are battle-tested moves for founders who need to scale with discipline, not chaos.
1. Pricing Reset: Move Beyond Flat-Rate
Pricing is the fastest lever to increase recurring revenue. Yet, 54% of SaaS firms undercharge their top customers. Flat-rate models cap your upside and create margin drag.
If your pricing hasn't changed in a year, you are leaving money on the table. The first step to increase recurring revenue is to audit what each segment pays and what value they receive.
- Review current pricing by customer segment.
- Identify high-usage, high-value customers paying the same as low-value ones.
- Develop value-based or usage-based tiers that map to customer outcomes.
Test new pricing with a small, low-risk cohort. Communicate changes clearly and frame them around added value, not just higher cost. Monitor for churn spikes in the first 30 days.
Case snap: One AI platform added £200k ARR in 30 days by switching from flat-rate to usage-based pricing. Churn stayed flat.
Pitfall to avoid: poor rollout. Customers fear surprises. Prepare your team and messaging.
For a deeper dive, see this guide on SaaS Pricing Strategy Insights.
2. ICP Discipline: Ruthlessly Focus Your Pipeline
Trying to sell to everyone is a direct path to stalled growth. Companies that tighten their Ideal Customer Profile (ICP) grow 2x faster.
To increase recurring revenue, define exactly who you will not sell to. Your "no" list is as important as your target list.
- Score your current customers by margin, retention, and expansion potential.
- Build a pipeline of only high-fit accounts.
- Remove low-fit leads from sales and marketing focus.
This discipline increases win rate and lifetime value, reducing wasted cycles. It also helps your team focus on accounts where you can actually increase recurring revenue, rather than chasing vanity logos.
Case snap: A Web3 SaaS cut its pipeline by 40 percent, focusing on ICP fit. Conversion doubled in 60 days.
Kill list: Stop chasing every inbound lead. Focus on accounts that look like your best customers.
3. Upsell & Cross-Sell: Systemise Expansion
70% of ARR growth in mature SaaS comes from existing customers, not new ones. Expansion is the most efficient way to increase recurring revenue.
Map out clear expansion paths for each account:
- Seat growth: add more users as customers expand.
- Feature upgrades: unlock premium modules, analytics, or integrations.
- Premium support: offer faster SLAs or dedicated account management.
Build triggers for expansion—usage milestones, contract renewals, or product adoption signals. Run quarterly account reviews to uncover gaps.
Case snap: A SaaS firm added £400k in net revenue retention over six months by installing a formal expansion playbook for customer success managers.
Avoid random upsell attempts. Systemise your process, track results, and hold owners accountable.
4. Reduce Churn: Nail Retention Before Acquisition
Churn is the silent killer of growth. A 1% improvement in retention delivers 12% more ARR in a year. Before you pour resources into new acquisition, fix leaks in your bucket to increase recurring revenue.
Identify churn drivers fast:
- Onboarding gaps: weak first 30 days drive early exits.
- Poor fit: misaligned customers churn quickly.
- Value gaps: customers who do not see value leave.
Run a 30-day churn audit. Score customer health using product usage and engagement data. Review renewal risks weekly.
Deploy dunning management for failed payments—Stripe benchmarks show a 38% recovery rate here.
Case snap: A SaaS platform cut churn from 4% to 2% in 90 days, saving £100k ARR.
Kill list: Drop one-size-fits-all onboarding. Tailor your approach by segment.
5. Productise Services: Turn Projects Into Subscriptions
Many tech firms miss recurring revenue by treating services as custom projects. The fastest way to increase recurring revenue is to productise services.
Turn support, analytics, or integration work into repeatable, subscription-based packages.
- Audit all current services.
- Bundle similar offerings into clear monthly or annual packages.
- Price based on value delivered, not hours worked.
Anchor pricing to outcomes. Customers pay for results, not effort.
Case snap: A B2B SaaS converted £50k of one-off projects into £10k monthly recurring revenue in 60 days by bundling services.
Pitfalls: Over-customisation and scope creep. Set clear boundaries and standardise delivery.
6. Refresh Your Commercial Model: Install an Operating Rhythm
Growth stalls when there is no operating cadence. To increase recurring revenue, you need a system, not just hustle.
Install a revenue operating rhythm:
- Weekly pipeline reviews to spot gaps.
- Monthly pricing reviews to catch leaks.
- Quarterly strategy resets to align leadership and priorities.
Assign clear owners for pricing, ICP, and expansion. Use dashboards to track progress and drive accountability.
Case snap: One SaaS firm added £300k ARR in six months by installing a new operating rhythm and shifting key decisions from the founder to the leadership team.
Kill list: Ad-hoc sales meetings and founder-only decisions. Make revenue a team sport.
7. Leverage Data: Act On What Your Analytics Tell You
Most founders collect data but fail to act. To truly increase recurring revenue, you must turn analytics into decisions.
Use cohort analysis and win/loss reviews to spot high-churn segments. Track net revenue retention (NRR) and customer health in simple dashboards.
- Cut losing segments quickly.
- Double down on segments with high margin and retention.
- Share actionable insights with your team weekly.
Case snap: A SaaS firm identified a high-churn segment, reallocated resources, and improved margin by 15 percent within a quarter.
Avoid data paralysis. Choose three key metrics: revenue, churn, expansion. Make decisions every month.
Playbook for Fast Execution: 7–30 Day Action Plan
Founders know time kills deals. If you want to increase recurring revenue before the next board meeting, you need a playbook that delivers results in weeks, not months.
This 7–30 day plan gives you the structure, focus, and commercial discipline to break through growth plateaus. Each step is designed for measurable, high-impact change.
Step-by-Step Implementation Guide
Week 1: Run a Reality Review
Start with brutal honesty. Pull data on pipeline health, churn by cohort, pricing by segment, and win/loss by ICP. Use the findings to set a baseline. Identify the biggest blockers to increase recurring revenue, such as flat pricing, poor retention, or founder bottleneck.
Checklist:
- Cohort retention rates
- Win/loss by ICP segment
- Pricing breakdown by customer type
- Net revenue retention
- Expansion and upsell data
Spot where margin leaks, churn spikes, or pipeline stalls. Use this insight to set priorities.
Week 2: Prioritise Pricing Reset and ICP Focus
Focus beats effort. Start with pricing, as most SaaS firms undercharge high-value accounts. Audit your current pricing model. Compare against SaaS Pricing Strategies 2025 for market benchmarks. Test value-based tiers on a low-risk cohort. Tighten your ICP—score customers by margin and retention, and build your pipeline around high-fit accounts.
Quick Wins Table
| Action | Impact | Timeframe |
|---|---|---|
| Pricing audit | +10–20% margin | 1 week |
| ICP scoring | +2x win rate | 3 days |
| Kill low-fit pipeline | +30% focus | 2 days |
Week 3: Launch Upsell and Cross-Sell Playbooks
Most recurring revenue growth comes from existing customers. Build structured playbooks for CSMs to trigger expansion conversations at renewal, usage milestones, or after onboarding success. Review accounts quarterly, map expansion paths, and assign clear owners for every upsell target.
Week 4: Audit Churn, Refresh Onboarding, Install Dunning
Retention drives compounding growth. Run a churn audit—review lost deals, onboarding gaps, and value delivery. Score customer health and flag renewal risks early. Install dunning management for failed payments. Refresh onboarding for each segment, dropping one-size-fits-all approaches.
Install a Revenue Operating Rhythm
Weekly pipeline reviews. Monthly pricing reviews. Quarterly commercial resets. Assign a revenue owner for each play. Set targets and track progress. This rhythm will help you increase recurring revenue with less chaos and more accountability.
Kill List: 5 Things to Stop Doing This Month
- Chasing every lead instead of focusing on ICP fit.
- Selling legacy products that drain resources.
- Founder-only decision making in deals.
- Tracking vanity metrics over NRR and LTV/CAC.
- Ignoring expansion opportunities in your customer base.
Accountability and Next Steps
Install a commercial scorecard. Assign owners to each play. Set targets for pricing, pipeline quality, churn, and expansion. Review progress weekly. Execution, not intent, will increase recurring revenue.
Ready to break your revenue ceiling? Book a Reality Review or Pricing Reset Sprint—see /offers or /apply.
Case Snaps: Real-World Examples of Recurring Revenue Growth
The fastest way to increase recurring revenue is to learn from those who have done it. Below are four real-world case snaps, each showing how focused action delivered measurable results for SaaS, AI, Web3, and B2B software firms. For broader benchmarking, see SaaS Industry Statistics 2024 for sector-wide data on pricing, churn, and growth.
| Company Type | Tactic | Timeframe | Result |
|---|---|---|---|
| SaaS | Pricing Reset | 90 days | £600k ARR uplift |
| AI | ICP Discipline | 60 days | 2x win rate |
| Web3 | Systemised Expansion | 6 months | £400k NRR added |
| B2B SaaS | Productised Services | 60 days | £10k new MRR |
SaaS: Pricing Reset Drives 30 percent ARR Growth
A SaaS firm at £2m ARR was stuck, unable to increase recurring revenue due to flat-rate pricing. The team introduced usage-based tiers, launching the new model with 20 percent of their customer base.
Within 90 days, the result was £600k ARR uplift. Churn stayed steady, and margin improved. This case shows that a pricing reset is a direct lever to increase recurring revenue fast.
AI: ICP Discipline Doubles Win Rate
An AI platform struggled with a wide, unfocused pipeline and saw little progress to increase recurring revenue. Leadership cut the pipeline to only the top 30 percent of their ideal customer profile and dropped all low-fit leads.
In just 60 days, win rate jumped from 22 percent to 44 percent, and average deal size increased. Ruthless ICP focus delivered a step-change in efficiency and helped increase recurring revenue at pace.
Web3: Expansion System Adds £400k NRR
A Web3 SaaS relied on new logo acquisition, missing opportunities to increase recurring revenue from their base. They built expansion playbooks, trained CSMs on upsell and cross-sell, and installed quarterly reviews.
After six months, they added £400k in net revenue retention. The systemised approach to expansion proved critical to increase recurring revenue with existing customers.
B2B SaaS: Productised Services Unlock £10k MRR
A B2B SaaS was bogged down in custom projects, making it hard to increase recurring revenue. By bundling services into recurring monthly packages and pricing by value, not effort, they shifted the model.
In 60 days, they converted £50k of projects into £10k new MRR. Productising services created predictable, scalable growth and helped increase recurring revenue sustainably.
Metadata & Next Steps
Meta title: 7 Proven Ways To Increase Recurring Revenue In 2025
Meta description: Discover 7 actionable strategies to boost recurring revenue in SaaS, AI, and software in 2025. Evidence-based, founder-tested, and ready to deploy.
Ready to increase recurring revenue and break through your ceiling? Take action with a Reality Review or a Pricing Reset Sprint. For more insights, see our Revenue Growth Consulting Advice. Book your next step now at /offers or /apply.
If you’re serious about moving past the £1m to £10m revenue ceiling and want practical, proven ways to boost your recurring revenue, you’re in the right place. We’ve explored strategies like pricing resets, ICP discipline, and building an operating rhythm—real steps you can implement fast for measurable growth. But every business is unique, and sometimes a conversation is the quickest way to find clarity on your next move. If you’re ready to bring structure to your growth and avoid founder burnout, let’s take the next step together—[Book a discovery call](Let’s connect and talk).