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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

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.

For Entrepreneurs.com

More SaaS + Software Stats

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

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

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

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

How To Make Pricing A Constant Process In Your Organization

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%”

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

More SaaS & Tech Growth Strategy Stats

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

Google only has a 30 percent female workforce

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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