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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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

Three uses for the SaaS Guidelines

73% of organizations indicated nearly all their apps will be SaaS by 2021

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

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

More Growth Strategy Stats

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

Growing faster has twice as much impact on share price as improving margins

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

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

Invention is 10% inspiration and 90% perspiration.

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

47% of millennials want to work at diverse companies, according to a recent study.

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less