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When removing the smallest companies from the distribution, we find growth rates for companies using mainly Internet distribution lagged. Companies with mixed distribution strategies appear to be more agile and reported the highest growth. There was no distinguishable difference between growth rates for field sales vs. inside sales dominated companies. Rates are largely in line with last year’s survey.

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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%

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

How To Make Pricing A Constant Process In Your Organization

After $10M in ARR, the median growth rate slows to just under 50%

55% of SaaS companies rate Customer Retention as the key metric to measure

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

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

80% of venture capital investments take place in the enterprise

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%)

More Growth Strategy Stats

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

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

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

Companies with longer contracts (2+ years) reported the lowest annual unit churn

Google only has a 30 percent female workforce

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

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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