Cloud application services (SaaS) to reach $126 billions by the end of 2021

SaaS + Software
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The SaaS industry’s market capitalization in 2020 is approximately $110 Billion and is expecting a growth of 14.5% in the next year. And by the year 2022, it is expected to reach $143 billion. Services that are seeing most adoption by the companies include cloud consulting, implementation, migration, and management.

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

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

56% treat “Existing Customer Renewals” as high priority

More Market Research Stats

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

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

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

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.

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