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

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There are multiple ways where a business can improve and grow with the help of SaaS products. SaaS does not only make the service and products more accessible to the users but it is also a significant factor to generating more sales and improving customer satisfaction.

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The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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

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

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

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

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

SaaS IPOs have more than doubled over the last 12 years

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

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

More Market Research Stats

Over the past five years, the Global Biotechnology industry has grown by 2.0% to reach revenue of $301bn in 2019.

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

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

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

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%)

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