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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

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

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

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Three uses for the SaaS Guidelines

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

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

At Facebook, 15 percent of tech roles are staffed by women

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

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

How to Reduce Churn

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

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

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

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

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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