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

From For Entrepreneurs.com
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Not surprisingly, companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less. This year’s results were in-line with previous surveys.

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. In comparison with previous surveys, companies $2.5MM+ have shifted to greater use of field sales (+12 percentage points from 2015).

More SaaS + Software Stats

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

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

The best place to hide a dead body is page 2 of Google search results.

SaaS solutions have the highest security features with 95% security failures due to human error

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

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

More Market Research Stats

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

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

SaaS solutions have the highest security features with 95% security failures due to human error

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

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.

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%)

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

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

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