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

SaaS + Software
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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.

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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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

Negative Churn and Expansion Revenue

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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%)

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Analysed 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

More SaaS & Tech Growth Strategy Stats

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

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%

How To Make Pricing A Constant Process In Your Organization

Cloud-hosted applications have a 99% uptime

How to Reduce Churn

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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