It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

•PLG companies use product to drive user acquisition, expansion and retention

•PLG products are extremely sticky -people log in regularly and users share the products with colleagues and friends

•These businesses tend to boast amazing NPS scores

•The virality of user adoption and significant goodwill built with users enables PLG business to successfully (and efficiently) accelerate growth via cross-sell / upsell over time

HubSpot

More SaaS + Software Stats

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

Software and online services are in a period of dizzying growth

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

Negative Churn and Expansion Revenue

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

SaaS organizations are now operating in over 100 countries

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

Three uses for the SaaS Guidelines

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

More SaaS & Tech Growth Strategy Stats

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”

Google only has a 30 percent female workforce

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

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

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

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

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