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

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

Compared with previous surveys, field sales lagged inside sales by a greater amount this year (6% in 2015 vs. an insignificant 2% difference in 2014). Median growth among field sales dominated companies slightly lagged inside sales dominated companies (by 6% points), but led internet sales by 8% points. Channel sales dominated companies grew significantly faster, though the data is sparse. Mixed also performed well.

More SaaS + Software Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The median annual unit churn for SAAS companies was 10% in 2016

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

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

How to Reduce Churn

56% treat “Existing Customer Renewals” as high priority

Cloud-hosted applications have a 99% uptime

More SaaS & Tech Growth Strategy Stats

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18