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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

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

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

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

Negative Churn and Expansion Revenue

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

More Growth Strategy Stats

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

At Facebook, 15 percent of tech roles are staffed by women

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

They may forget what you said, but they will never forget how you made them feel.

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.