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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.

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More SaaS + Software Stats

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

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

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

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

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

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

Is your SaaS business viable?

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

More Growth Strategy Stats

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues