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

From 99firms
Quote in SaaS & Tech Growth Strategy

SaaS growth rates are astonishing; just between 2015 and 2017, the number of SaaS apps averagely used by organizations doubled up from 8 to 16. This upward trend will continue as 73% of businesses have said all of their apps will be SaaS by 2020.

More SaaS + Software Stats

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

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

80% of venture capital investments take place in the enterprise

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

How to Reduce Churn

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

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

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

More SaaS & Tech Growth Strategy Stats

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

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

Is your SaaS business viable?

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

Internet Sales strategies have a significantly lower CAC of just $0.42