SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

SaaS + Software
Quote in SaaS & Tech Growth Strategy

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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%).

For Entrepreneurs.com

More SaaS + Software Stats

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%

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

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

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

56% treat “Existing Customer Renewals” as high priority

More SaaS & Tech Growth Strategy Stats

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

After $10M in ARR, the median growth rate slows to just under 50%

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Is your SaaS business viable?

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

How to Reduce Churn

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