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

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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

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.

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

80% of venture capital investments take place in the enterprise

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

More Growth Strategy Stats

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

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

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

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

Software and online services are in a period of dizzying growth

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