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The statistic shows the number of employees at Lockheed Martin from 2000 to 2018. Lockheed Martin is an American global aerospace, defense, security, and advanced technology company with worldwide interests.

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

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

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

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

More Growth Strategy Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

Cloud-hosted applications have a 99% uptime

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

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