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

SaaS + Software
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As expected, field sales has the most expensive CAC. And, fields sales has widened the gap as its cost has increased, while inside and internet sales have remained relatively flat. Inside sales is now 17% lower than field sales (vs 10% lower last year) and Internet sales is 47% lower (vs 43% lower last year.) Channels sales at $0.53 CAC are at par with online distribution.

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

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

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

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

Analysed 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 SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

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

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%

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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