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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.

For Entrepreneurs.com

More SaaS + Software Stats

More than 1/2 of SAAS companies increased their spending on customer retention last year

80% of venture capital investments take place in the enterprise

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

More Growth Strategy Stats

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

SaaS IPOs have more than doubled over the last 12 years

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

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

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