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

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Overall, the median company devotes 30% of their CAC to marketing expenses, with the remainder allocated to sales. However, internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing. Besides a slight shift towards greater marketing spend by field sales companies, the results are largely consistent with last year’s results.

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Customer Segmentation analysis will help point out which are your most profitable segments

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

55% of SaaS companies rate Customer Retention as the key metric to measure

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

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.

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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Improve Your Pricing Schedule And Turn More Profit

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

A 1% increase in pricing strategy yields an average 11% increase in profit

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion