Statistic Info

Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

More SaaS + Software Stats

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

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

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

54% treat upselling and add-on sales as high priority

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

More Growth Strategy Stats

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

Software and online services are in a period of dizzying growth

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

How Often Should The Pricing Committee Be Meeting And Making Changes?

Growth matters more than margin or cost structure

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%

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

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

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

July 11, 2019 Seminar

Marketing Uncovered: Market Research & Assessments To Win

Know Where You Stand To Reach Your Destination This seminar will give you a step-by-step approach to gathering information from prospects, assessing your current marketing, and evaluating competitors. These elements are key to creating a plan for successful marketing and we’ll be giving you a unique insight into how to get it done. During this […]


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