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.
For Entrepreneurs.comSAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
After $10M in ARR, the median growth rate slows to just under 50%
Cloud-hosted applications have a 99% uptime
Companies with longer contracts (2+ years) reported the lowest annual unit churn