Investment in marketing automation tools is expected to reach $25 billion by the year 2023

SaaS + Software
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Companies have increasingly realized the benefits of using marketing automation tools. It saves more of their time and helps in scaling to run large campaigns. Hence, more and more companies are ready to invest in such tools.

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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

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%)

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

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

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

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

Three uses for the SaaS Guidelines

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

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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

SaaS organizations are now operating in over 100 countries

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

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

56% treat “Existing Customer Renewals” as high priority

80% of venture capital investments take place in the enterprise

How to Reduce Churn

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