Quote Info

Pricing/Upsell/Cross Sell

  • Multi-axis pricing
  • Additional product modules (easier to sell more to existing customers than it is to sell to brand new customers)
For Entrepreneurs.com

More SaaS + Software Stats

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

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

Is your SaaS business viable?

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

SaaS organizations are now operating in over 100 countries

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

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

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

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

More Growth Strategy Stats

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

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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%)

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel