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.

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More SaaS + Software Stats

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

More than 1/2 of SAAS companies increased their spending on customer retention last year

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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%

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

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

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”

More Growth Strategy Stats

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

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

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%)

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

Google only has a 30 percent female workforce

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

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Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015