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

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Another key value of having these conversion rates is the ability to understand the implications of future forecasts. For example, lets say your company wants to do $4m in the next quarter. You can work backwards to figure out how many demos/trials that means, and given the sales productivity numbers – how many salespeople are required, and going back a stage earlier, how many leads are going to be required. These are crucial planning numbers that can change staffing levels, marketing program spend levels, etc.

More SaaS + Software Stats

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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

80% of venture capital investments take place in the enterprise

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

More SaaS & Tech Growth Strategy Stats

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

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

The median annual unit churn for SAAS companies was 10% in 2016

At Facebook, 15 percent of tech roles are staffed by women

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

Software and online services are in a period of dizzying growth