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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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More SaaS + Software Stats

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

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

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

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

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

How to Reduce Churn

Negative Churn and Expansion Revenue

More Growth Strategy Stats

SaaS organizations are now operating in over 100 countries

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

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

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

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

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%

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%