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

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

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

55% of SaaS companies rate Customer Retention as the key metric to measure

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

More Growth Strategy Stats

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

After $10M in ARR, the median growth rate slows to just under 50%

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

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