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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The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

56% treat “Existing Customer Renewals” as high priority

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

At Twitter, 10 percent of tech roles are staffed by women

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

56% treat “Existing Customer Renewals” as high priority

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

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

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