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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.

SmartKarrot

More SaaS + Software Stats

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

How To Make Pricing A Constant Process In Your Organization

Cloud-hosted applications have a 99% uptime

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

56% treat “Existing Customer Renewals” as high priority

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

More Growth Strategy Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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 average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

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

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

56% treat “Existing Customer Renewals” as high priority

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

At Twitter, 10 percent of tech roles are staffed by women