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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

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

HubSpot

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Customer Segmentation analysis will help point out which are your most profitable segments

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

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

55% of SaaS companies rate Customer Retention as the key metric to measure

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

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

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

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

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

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

Cloud-hosted applications have a 99% uptime

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

A 1% increase in pricing strategy yields an average 11% increase in profit

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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