Internet Sales strategies have a significantly lower CAC of just $0.42

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Compared with previous surveys, field sales lagged inside sales by a greater amount this year (6% in 2015 vs. an insignificant 2% difference in 2014). Median growth among field sales dominated companies slightly lagged inside sales dominated companies (by 6% points), but led internet sales by 8% points. Channel sales dominated companies grew significantly faster, though the data is sparse. Mixed also performed well.

More SaaS + Software Stats

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

Three uses for the SaaS Guidelines

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

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

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

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

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

More Growth Strategy Stats

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

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)

How to Reduce Churn

The median annual unit churn for SAAS companies was 10% in 2016

They may forget what you said, but they will never forget how you made them feel.

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

High-growth companies generate 60% fewer sales opportunities than low-growth companies