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

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

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

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

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

The median annual unit churn for SAAS companies was 10% in 2016

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%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

More Growth Strategy Stats

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Analyzed 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

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

Three uses for the SaaS Guidelines

54% treat upselling and add-on sales as high priority

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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