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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.

More SaaS + Software Stats

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

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

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

Negative Churn and Expansion Revenue

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

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

More Growth Strategy Stats

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

80% of venture capital investments take place in the enterprise

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

High-growth companies generate 60% fewer sales opportunities than low-growth companies

56% treat “Existing Customer Renewals” as high priority

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

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

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 top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

73% of organizations indicated nearly all their apps will be SaaS by 2021