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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).

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More SaaS + Software Stats

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

Customer Segmentation analysis will help point out which are your most profitable segments

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”

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

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

How To Make Pricing A Constant Process In Your Organization

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

More Growth Strategy Stats

At Facebook, 15 percent of tech roles are staffed by women

Women in western countries use the internet 17 percent more than their male counterparts

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

Improve Your Pricing Schedule And Turn More Profit

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes