Statistic Info

The SaaS landscape is ever changing, and its crucial for businesses to evolve their strategies and tactics -but without objective data on what works and what doesn’t, shifting strategies would be mere conjecture.

HubSpot

More SaaS + Software Stats

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

54% treat upselling and add-on sales as high priority

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

More Growth Strategy Stats

SaaS solutions have the highest security features with 95% security failures due to human error

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

54% treat upselling and add-on sales as high priority

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”

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

SaaS IPOs have more than doubled over the last 12 years

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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