56% treat “Existing Customer Renewals” as high priority

SaaS + Software
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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.

Totango

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

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Negative Churn and Expansion Revenue

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

73% of organizations indicated nearly all their apps will be SaaS by 2021

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

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Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

Software and online services are in a period of dizzying growth

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

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

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

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The average SaaS company spends just 6 hours determining their pricing strategy

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

At Twitter, 10 percent of tech roles are staffed by women

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