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

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.

SaaS & Tech Growth Strategy Articles

• Creating A Strategic Marketing Approach for Software & Technology Companies
  The most successful marketing campaigns are executed with a clear vision and goal.
• Why Link Building is Crucial for Your SEO Strategy in 2023
  Why Link-Building is Crucial for Your SEO Strategy in 2023Link building is an essential part of search engine optimization and is imperative to a successful SEO strategy. It involves acquiring links from other websites to your own website in order to improve its authority and search engine rankings. In other words, link-building is the process […]
• Small Ways to Add Big Personality to Your IT Site
  No one said your website needed to be boring.
• SaaS Trends and Stats You Must Know in 2022
  SaaS Trends and Stats You Must Know in 2022SaaS in 2022 will be a year of growth and innovation with heavy focus on the customer experience. With the impact of COVID-19 on every area of business and consumer needs changing, the SaaS industry underwent radical but essential change throughout 2020 and 2021 To succeed, companies […]
• Marketing Strategy vs. Marketing Plan
  So you’ve tried every marketing tip in the book, and you still aren’t seeing results. You’ve started a blog, engaged on social media, made videos, and done everything else you’ve been recommended. Despite your extensive efforts, you haven’t seen any increase in your business. So what’s the problem? The problem probably isn’t what you’re doing, […]
• The Vision Gap
• Understanding the Fundamentals of Your SaaS Go-To-Market Strategy
  Understanding the Fundamentals of Your SaaS Go-To-Market StrategyExplore the article:What is a go-to-market strategy for SaaS companies?How do you create a go-to-market strategy for a SaaS product?What are the key components of a successful go-to-market strategy for SaaS?How can SaaS companies effectively target and reach their ideal customers?What role does pricing play in a SaaS […]
• What is EdTech? Get to Know The Emerging SaaS Field
  What is EdTech? Get to know the emerging field.EdTech is a rising industry in the SaaS world. Here is your guide to the internet's most burning EdTech questions.Explore the article:What is education technology (EdTech)?How can technology be used to enhance education?What are the benefits of using EdTech in the classroom?What are some popular EdTech tools […]
• An Applied Innovation Model
  Innovation and creativity are becoming increasingly valuable as the need for unique solutions to business problems becomes more salient. Cognitive psychologist Scott Barry Kaufman argues that the creative process can be viewed in four stages: 1. Preparation – identify the problem and perform research 2. Incubation – passive, unconscious period where innovation “percolates” 3. Illumination […]

SaaS + Software Stats

• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs
• Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month
• 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
• When venture capitalists participate in seed rounds, the average round size is 3x larger
• The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn
• The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer
• 55% of SaaS companies rate Customer Retention as the key metric to measure
• SaaS IPOs have more than doubled over the last 12 years
• SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

SaaS & Tech Growth Strategy Stats

• The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost
• At Twitter, 10 percent of tech roles are staffed by women
• 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”
• SaaS companies in the $7.5MM-$15MM range are among the fastest growers
• Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business
• 47% of millennials want to work at diverse companies, according to a recent study.
• The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%
• 56% treat “Existing Customer Renewals” as high priority
• 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%)