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

How Often Should The Pricing Committee Be Meeting And Making Changes?

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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”

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

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Internet Sales strategies have a significantly lower CAC of just $0.42

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

More Growth Strategy Stats

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

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

How To Make Pricing A Constant Process In Your Organization

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years