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

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.

SaaS & Tech Growth Strategy Articles

• The Vision Gap
• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• How to Determine a Test Pricing Strategy for Your SaaS Product
  SaaS pricing changes as a company grows and matures. Research states that 98% of SaaS businesses have shown positive results as an outcome of changing core aspects of their pricing policies.2022 is the year for your business to revisit your pricing. Due to a growing market, difficult competition, and the fast-paced industry, many SaaS companies […]
• Brand Strategy Framework
  A Framework for Creating A Smart Brand StrategyA brand is so much more than a logo.It's what makes you unique and how you communicate that to prospects, customers, and employees to inspire them to take action.We've developed a Brand Strategy Framework to drive marketing, sales, recruiting, and raising capital.A smart Brand Strategy is central to […]
• An Applied Innovation Model
  Innovation and creativity are becoming increasingly valuable as the need for unique solutions to business problems becomes more salient. Cognitive psychologist Scott Barry Kaufman argues that the creative process can be viewed in four stages: 1. Preparation – identify the problem and perform research 2. Incubation – passive, unconscious period where innovation “percolates” 3. Illumination […]
• SaaS Sales Funnel
  The SaaS Sales FunnelWe're breaking down how to build a funnel for maximum growth.Every step in the funnel is a chance to win or lose customers.So, let's explore the SaaS Customer Journey from prospect to evangelist and see how to improve top-line revenue through acquisition as well as retention; and ultimately evangelism. TABLE OF CONTENTSOverviewPT.1  Focus […]
• What The Smart Home Means For Marketing
  This is the reality that we are on the cusp of...
• What Type of Media is Right for Your Target Audience?
  Choosing the most suitable media type is necessary if you want to communicate your message to your technical audiences effectively. Technical audiences require a more technically detailed approach when your IT company is conveying its message to them. Use these media types to ensure that your technical audience is getting the insight you aim to […]
• 13 Strategies to Boost SaaS User Retention and Renewals
  Improving your retention rate can mean the difference between growing your company and running it into the ground. Read specific strategies you can use to improve your SaaS retention rate.

SaaS + Software Stats

• 56% treat “Existing Customer Renewals” as high priority
• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth
• Internet Sales strategies have a significantly lower CAC of just $0.42
• The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year
• The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%
• The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
• As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth
• Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

SaaS & Tech Growth Strategy Stats

• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.
• Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50
• Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)
• 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
• In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.
• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
• 47% of millennials want to work at diverse companies, according to a recent study.
• When venture capitalists participate in seed rounds, the average round size is 3x larger
• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%