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

Growing faster has twice as much impact on share price as improving margins

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

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

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

More Growth Strategy Stats

54% treat upselling and add-on sales as high priority

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?

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Growing faster has twice as much impact on share price as improving margins