51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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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 median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

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%)

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

How To Make Pricing A Constant Process In Your Organization

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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How Often Should The Pricing Committee Be Meeting And Making Changes?

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

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

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

They may forget what you said, but they will never forget how you made them feel.

Software and online services are in a period of dizzying growth

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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