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Of course, any good marketing plan will include how it will be measured. Here are the key metrics that you should look to when gauging the marketing success of your SaaS.

MQL velocity

MQL velocity has been called “the most important metric in SaaS.” This is because though sales and pipeline forecasts are useful, they are lagging indicators hinging on both correct opportunity probability assignments and close dates. However, by looking at MQL velocity compared to lead commits, you can see forward-looking insights beyond a traditional pipeline report.

 

HubSpot

More SaaS + Software Stats

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

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

Analysed 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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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”

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

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

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

More Growth Strategy Stats

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

More than 1/2 of SAAS companies increased their spending on customer retention last year

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months