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

SaaS + Software
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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).

For Entrepreneurs.com

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Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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%

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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.

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

More Market Research Stats

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

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

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

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

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

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

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

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

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