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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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

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

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

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

More Growth Strategy Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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%

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

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)