Quote Info

In 2018, the global traditional outsourcing industry generated 85.6 billion U.S. dollars in revenue. In that same year, the total contract value of the business process outsourcing (BPO) market amounted to 23.6 billion U.S. dollars.

Statista

More Tech Services Stats

Negative Churn and Expansion Revenue

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

83% of China’s digital shoppers made an online purchase in the past month

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

70% Say Presentation Skills Are Critical For Career Success

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

More Growth Strategy Stats

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

80% of venture capital investments take place in the enterprise

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

SaaS IPOs have more than doubled over the last 12 years

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts