Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

SaaS + Software
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What we have found is that each of these lead sources tends to saturate over time, and produce less leads for more dollars invested. As a result, SaaS companies will need to be constantly evaluating new lead sources that they can layer in on top of the old to keep growing.

Since the conversion rates and costs per lead vary quite considerably, it is important to also measure the overall ROI by lead source.

Growing leads fast enough to feed the front end of the funnel is one of the perennial challenges for any SaaS company, and is likely to be one of the greatest limiting factors to growth. If you are facing that situation, the most powerful advice we can give you is to start investing in Inbound Marketing techniques (see Get Found using Inbound Marketing). This will take time to ramp up, but if you can do it well, will lead to far lower lead costs, and greater scaling than other paid techniques. Additionally the typical SaaS buyer is clearly web-savvy, and therefore very likely to embrace inbound marketing content and touchless selling techniques.

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

Three uses for the SaaS Guidelines

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

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

80% of venture capital investments take place in the enterprise

More Growth Strategy Stats

Google only has a 30 percent female workforce

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

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

SaaS solutions have the highest security features with 95% security failures due to human error

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

Invention is 10% inspiration and 90% perspiration.

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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