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

From For Entrepreneurs.com
Statistic in SaaS & Tech Growth Strategy

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.

More SaaS + Software Stats

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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

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

More SaaS & Tech Growth Strategy Stats

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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; this will become a major drag on growth

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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

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

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews