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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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More SaaS + Software Stats

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

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

The median annual unit churn for SAAS companies was 10% in 2016

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Customer Segmentation analysis will help point out which are your most profitable segments

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

More Growth Strategy Stats

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

How to Reduce Churn

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%)

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

Invention is 10% inspiration and 90% perspiration.

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes