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

So, growth is essential to value creation. But is it more important than other factors, such as cost control and operating excellence? We analyzed the relationship of cost structure to growth and found little or no correlation. In every major cost category—cost of goods sold, R&D, marketing and sales, and overhead—there is little or no correlation between the level of expense or investment and growth rate. Fast-growing companies can spend a lot or a little on these categories; it doesn’t seem to matter.

SaaS & Tech Growth Strategy Articles

• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• Create a Tangible Strategic Vision
  When it comes to creating a strategic vision for your business, a few elements likely pop into mind, such as a mission, your values or your core beliefs. While all of these factors are important, business owners can forget one very important one – making your business tangible. Look up the definition of this word […]
• Accelerating Your B2B Sales Growth with Free Promotion
  Accelerating Your B2B Sales Growth with Free PromotionWhile every business is different, they all have the same goal: to get sales. The best businesses don’t stop there, though. They are interested in drastically increasing sales so that they can scale their business. And if you want your company to still be around in 10-20 years, […]
• Maximizing Revenue with Effective SaaS Sales Strategies
  Maximizing Revenue with Effective SaaS Sales StrategiesSaaS sales strategies have evolved significantly over the past few years, with the industry seeing a compound annual growth rate (CAGR) of 18% from 2020 to 2027, according to a report by Allied Market Research. This growth has resulted in a highly competitive market, where differentiation and customer retention […]
• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.
• What The Smart Home Means For Marketing
  This is the reality that we are on the cusp of...
• Everything You Need to Know About SaaS Affiliate Programs and How to Implement it Into Your Product-Led Growth Strategy.
  SaaS Affiliate Programs: Everything You Need to Know About and How to Implement it Into Your Product-Led Growth Strategy.Generating trial users and acquiring customers for your SaaS business can be a frustrating challenge. If you're looking for new ways to grow your business, you may have heard of affiliate marketing and wondered how it can […]
• The Importance of a Business Plan
  Before you can begin putting together an effective marketing plan, it’s important to make sure you have a business plan in place. Today Andy talks about understanding the long term and short term goals and objectives of your business, before you start planning your marketing. One of the things I wanted to talk about today […]

SaaS + Software Stats

• Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense
• Customer Segmentation analysis will help point out which are your most profitable segments
• The median annual unit churn for SAAS companies was 10% in 2016
• SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence
• 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%
• Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
• The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling
• How Often Should The Pricing Committee Be Meeting And Making Changes?

SaaS & Tech Growth Strategy Stats

• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing
• Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense
• Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015
• It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR
• Cloud-hosted applications have a 99% uptime
• The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
• They may forget what you said, but they will never forget how you made them feel.
• The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn