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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

SaaS organizations are now operating in over 100 countries

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

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

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

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

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”

More Growth Strategy Stats

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services