In contrast, 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

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

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

Growth yields greater returns

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

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

How To Make Pricing A Constant Process In Your Organization

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Negative Churn and Expansion Revenue

More Growth Strategy Stats

What Levers are available to drive Growth

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

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

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

Software and online services are in a period of dizzying growth

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

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

56% treat “Existing Customer Renewals” as high priority