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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

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

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

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

More Growth Strategy Stats

A 1% increase in pricing strategy yields an average 11% increase in profit

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

Customer Segmentation analysis will help point out which are your most profitable segments