SaaS solutions have the highest security features with 95% security failures due to human error in B2B SaaS
The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025 in SaaS & Tech Growth Strategy
Cloud application services are expected to grow at an average annual rate of 18.5% through 2025 in Market Research
Investment in marketing automation tools is expected to reach $25 billion by the year 2023 in Market Research
For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time in SaaS & Tech Growth Strategy
As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth in SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month in SaaS & Tech Growth Strategy
A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses in SaaS & Tech Growth Strategy
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs in SaaS & Tech Growth Strategy
As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn in B2B SaaS
In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20% in SaaS & Tech Growth Strategy
The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100% in SaaS & Tech Growth Strategy
Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month in SaaS & Tech Growth Strategy
Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale in SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%. in SaaS & Tech Growth Strategy
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies in SaaS & Tech Growth Strategy
SaaS companies in the $7.5MM-$15MM range are among the fastest growers in SaaS & Tech Growth Strategy
55% of SaaS companies rate Customer Retention as the key metric to measure in SaaS & Tech Growth Strategy
The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost in SaaS & Tech Growth Strategy
Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000 in SaaS & Tech Growth Strategy
It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue in SaaS & Tech Growth Strategy
At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR in SaaS & Tech Growth Strategy
It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR in SaaS & Tech Growth Strategy
The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year in SaaS & Tech Growth Strategy
Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50 in SaaS & Tech Growth Strategy
Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years in SaaS & Tech Growth Strategy
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million in SaaS & Tech Growth Strategy
The fastest growing SaaS companies raise an average of $9.5M in Series A funding in SaaS & Tech Growth Strategy
When venture capitalists participate in seed rounds, the average round size is 3x larger in SaaS & Tech Growth Strategy
All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing in SaaS & Tech Growth Strategy
The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling in SaaS & Tech Growth Strategy
The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11% in SaaS & Tech Growth Strategy
The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers in SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
Internet Sales strategies have a significantly lower CAC of just $0.42 in SaaS & Tech Growth Strategy
To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14 in SaaS & Tech Growth Strategy
Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases in SaaS & Tech Growth Strategy
51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution in SaaS & Tech Growth Strategy
The average SaaS company spends just 6 hours determining their pricing strategy in SaaS & Tech Growth Strategy
A 1% increase in pricing strategy yields an average 11% increase in profit in SaaS & Tech Growth Strategy
36% of SaaS businesses managed to reduce their revenue churn over the last 12-months in SaaS & Tech Growth Strategy