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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

More SaaS + Software Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

Growing faster has twice as much impact on share price as improving margins

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

How to Reduce Churn

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

55% of SaaS companies rate Customer Retention as the key metric to measure

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

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

More Growth Strategy Stats

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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

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

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

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

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