Quote Info

In comparison to previous surveys, it appears there is more confidence in inside sales in the $1K-$25K range.

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More SaaS + Software Stats

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

56% treat “Existing Customer Renewals” as high priority

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

More Growth Strategy 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

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

They may forget what you said, but they will never forget how you made them feel.

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Google only has a 30 percent female workforce

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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