Statistic Info

If a company were to maintain an aggressive 75% CAGR, it would take just over 5 years to hit that coveted milestone

Spend peaks during the expansion stage when companies rapidly build out their sales & lead generation teams

HubSpot

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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.

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

Three uses for the SaaS Guidelines

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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 organizations are now operating in over 100 countries

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

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

The median annual unit churn for SAAS companies was 10% in 2016

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

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

They may forget what you said, but they will never forget how you made them feel.

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