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

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.

SaaS & Tech Growth Strategy Articles

• 6 Steps For Optimizing Your SaaS Sales Strategy
  Understand your sales process to help build a better funnel, and guide leads through it.
• The Importance of a Business Plan
  Before you can begin putting together an effective marketing plan, it’s important to make sure you have a business plan in place. Today Andy talks about understanding the long term and short term goals and objectives of your business, before you start planning your marketing. One of the things I wanted to talk about today […]
• Understanding the Fundamentals of Your SaaS Go-To-Market Strategy
  Understanding the Fundamentals of Your SaaS Go-To-Market StrategyExplore the article:What is a go-to-market strategy for SaaS companies?How do you create a go-to-market strategy for a SaaS product?What are the key components of a successful go-to-market strategy for SaaS?How can SaaS companies effectively target and reach their ideal customers?What role does pricing play in a SaaS […]
• SaaS Sales Funnel
  The SaaS Sales FunnelWe're breaking down how to build a funnel for maximum growth.Every step in the funnel is a chance to win or lose customers.So, let's explore the SaaS Customer Journey from prospect to evangelist and see how to improve top-line revenue through acquisition as well as retention; and ultimately evangelism. TABLE OF CONTENTSOverviewPT.1  Focus […]
• Organization Structure Planning
  In this Insivia insight, Andy points out how important organization structure planning is to your long term goals. Unless you are a sole proprietor working alone, you team will be a vital part of your growth and success. Incorporating them into your plan will not only help them see how all of the pieces fit […]
• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• Your Guide to All Things EdTech: Go-To-Market, Branding, Positioning
  Your Guide to EdTech: Go-To-Market, Branding, and Positioning StrategiesA compelling positioning, branding, and go-to-market strategy is critical for EdTech companies for several reasons.The EdTech market is highly competitive, with many companies vying for attention from educators, students, and parents. A strong brand can help your company stand out in this crowded market and attract new […]
• Marketing Strategy vs. Marketing Plan
  So you’ve tried every marketing tip in the book, and you still aren’t seeing results. You’ve started a blog, engaged on social media, made videos, and done everything else you’ve been recommended. Despite your extensive efforts, you haven’t seen any increase in your business. So what’s the problem? The problem probably isn’t what you’re doing, […]
• Create a Tangible Strategic Vision
  When it comes to creating a strategic vision for your business, a few elements likely pop into mind, such as a mission, your values or your core beliefs. While all of these factors are important, business owners can forget one very important one - making your business tangible.Look up the definition of this word and […]

SaaS + Software Stats

• When venture capitalists participate in seed rounds, the average round size is 3x larger
• Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50
• 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
• Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?
• 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
• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.
• 54% treat upselling and add-on sales as high priority
• 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”
• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

SaaS & Tech Growth Strategy Stats

• 56% treat “Existing Customer Renewals” as high priority
• SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)
• The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%
• The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months
• Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business
• They may forget what you said, but they will never forget how you made them feel.
• SaaS organizations are now operating in over 100 countries
• It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.