Statistic Info

The median annual contract size (subscription component only) for the group was $25K per year. These results are somewhat above the previous survey medians of $21K, $21K, $20K in 2015, 2014 and 2013, respectively.

The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

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More SaaS + Software Stats

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

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

55% of SaaS companies rate Customer Retention as the key metric to measure

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

When venture capitalists participate in seed rounds, the average round size is 3x larger

More Growth Strategy Stats

Internet Sales strategies have a significantly lower CAC of just $0.42

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.

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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%

At Facebook, 15 percent of tech roles are staffed by women

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

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

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