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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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

Software and online services are in a period of dizzying growth

More Growth Strategy Stats

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

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