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 median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

SaaS IPOs have more than doubled over the last 12 years

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

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

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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

More Growth Strategy Stats

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

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

56% treat “Existing Customer Renewals” as high priority

September 19, 2019 Seminar

Driving Traffic To Generate Leads: Content Marketing, Paid Ads & SEO

If your business if starving for new leads but struggling with all of the noise, rising costs, and a rapidly changing landscape of the digital marketing world, this seminar will equip you with what you need to gain momentum and leave with an actionable gameplan.


Details + Registration