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

Statistic Info

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

More SaaS + Software Stats

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

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

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

Negative Churn and Expansion Revenue

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

Is your SaaS business viable?

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

More Growth Strategy Stats

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

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

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”

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

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%)

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

56% treat “Existing Customer Renewals” as high priority