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

From Totango
Quote in Market Research

Increased retention and upsell leads to faster growth Companies that are doing a good job of controlling churn and driving new revenue from existing customers are on the whole growing substantially faster than their peers. Companies still place priority on new customer acquisition Despite a shift in the metrics companies are tracking, priority and funding for customer renewals and upsell has not increased. This suggests that despite best intentions to focus on monetizing existing customers, day-to-day business realities make it di?cult for companies to shift priority and funding. SaaS metrics shifting focus toward existing customers This year more companies than ever are looking at metrics on existing customers such as customer lifetime value, revenue per user, product adoption, and customer health.

More SaaS + Software Stats

Growing faster has twice as much impact on share price as improving margins

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Cloud-hosted applications have a 99% uptime

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

More Market Research Stats

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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%

SaaS solutions have the highest security features with 95% security failures due to human error

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%)

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