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

The future of growth is product led. This isn’t merely the latest fad or buzzword. Data shows that companies leveraging a PLG strategy perform better on average -faster growth, higher margins, lower burn and stronger valuation multiples. As with many new operational strategies, OpenView believes product led growth will soon become the norm, making it table stakes for SaaS companies that want to win in their markets. What is your company doing to adapt to the product led growth revolution

SaaS & Tech Growth Strategy Articles

• Maximizing Revenue with Effective SaaS Sales Strategies
  Maximizing Revenue with Effective SaaS Sales StrategiesSaaS sales strategies have evolved significantly over the past few years, with the industry seeing a compound annual growth rate (CAGR) of 18% from 2020 to 2027, according to a report by Allied Market Research. This growth has resulted in a highly competitive market, where differentiation and customer retention […]
• Small Ways to Add Big Personality to Your IT Site
  No one said your website needed to be boring.
• SaaS Trends and Stats You Must Know in 2022
  SaaS Trends and Stats You Must Know in 2022SaaS in 2022 will be a year of growth and innovation with heavy focus on the customer experience. With the impact of COVID-19 on every area of business and consumer needs changing, the SaaS industry underwent radical but essential change throughout 2020 and 2021 To succeed, companies […]
• How to Determine a SaaS Marketing Budget
  Determining a marketing budget for a SaaS or Software company can be a challenging exercise.  Often there is no one right answer for everyone but there are ways to help you attack the problem.Below, read our expanded article and watch our video with Andy Halko as he shares some helpful tips on how to create […]
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.
• How Technology Companies Can Leverage Focused Niche Markets
  How B2B SaaS Companies Can Leverage Focused Niche MarketingAs the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other's throats all the time for survival. It's all about 'survival of the fittest. […]
• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• How To Get a Head Start on Marketing Your Product
  When developing a new product or service many people don’t think to begin their marketing ahead of time. Doing this can greatly increase your chances for success. In this insight Andy shares a few ways you can get your product out to your audience before it launches. Did you like this insight? Make sure you […]
• 7 Key SaaS Growth Strategies
  Customers aren't just going to appear; marketing teams need to proactively reach them in creative ways. In the current marketing landscape, brands have a near limitless number of ways to reach potential customers.

SaaS + Software Stats

• 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
• 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
• Improve Your Pricing Schedule And Turn More Profit
• Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month
• Customer Segmentation analysis will help point out which are your most profitable segments
• SaaS solutions have the highest security features with 95% security failures due to human error
• Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases
• Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
• Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

SaaS & Tech Growth Strategy Stats

• How Often Should The Pricing Committee Be Meeting And Making Changes?
• Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases
• In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.
• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
• 55% of SaaS companies rate Customer Retention as the key metric to measure
• Is your SaaS business viable?
• Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month
• Women in western countries use the internet 17 percent more than their male counterparts
• How To Make Pricing A Constant Process In Your Organization