It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

The most significant changes this year include: 1) Upsells: this year just 45% paid full commission rates on upsells, vs. 58% in last year’s group; 2) This year just 32% paid no additional commission on longer term contracts vs. 42% in last year’s group. Not surprisingly, commissions on renewals are typically deeply discounted, with a median rate of 2%. Upsells command a median rate of 8%, and nearly half of the companies pay full commissions on upsells.

SaaS + Software Stats

• The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
• More than 1/2 of SAAS companies increased their spending on customer retention last year
• Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
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• 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
• 73% of organizations indicated nearly all their apps will be SaaS by 2021
• More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

SaaS & Tech Growth Strategy Stats

• Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
• 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”
• Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem
• When venture capitalists participate in seed rounds, the average round size is 3x larger
• In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.
• The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
• The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%
• SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)
• 47% of millennials want to work at diverse companies, according to a recent study.