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As expected, companies that are focused mainly on enterprise sales have higher levels of professional services. In comparison with last year’s survey, attach rates ticked down for Enterprise and SMB (2015: Enterprise 26%, SMB 18%).

More SaaS + Software Stats

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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”

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

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

Software and online services are in a period of dizzying growth

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

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

SaaS IPOs have more than doubled over the last 12 years

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

More Growth Strategy Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

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

Google only has a 30 percent female workforce

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Growth trumps all

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