Quote Info

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

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

The best place to hide a dead body is page 2 of Google search results.

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

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

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

Three uses for the SaaS Guidelines

More Growth Strategy Stats

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

The average SaaS company spends just 6 hours determining their pricing strategy

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

SaaS solutions have the highest security features with 95% security failures due to human error

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Cloud application services (SaaS) to reach $126 billions by the end of 2021