Software and online services are in a period of dizzying growth

Year-old companies are turning down billion-dollar buyouts in the hopes of multibillions in a few months. But we have seen similar industry phases before, and they have often ended with growth and valuations fizzling out. The industry’s booms and busts make growth, an essential ingredient in value creation, difficult to understand. To date, little empirical work has been done on the importance of revenue growth for software and Internet-services companies or how to find new sources of growth when old ones run out.

SaaS & Tech Growth Strategy Articles

• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• Social Media Trends for B2B SaaS Brands
  Social Media Trends for B2B SaaS Brands to gain trust, drive trials & demos and speed up the sales cycle.
• Segmentation, Targeting, and Positioning
  If you try to target everyone you end up not reaching anyone.
• Blue Ocean Strategy Developing Value Propositions
• Blue Ocean Strategy
  Today, Andy shares with us what a "Blue Ocean" strategy is and how to implement it in your business and marketing strategies. Blue Ocean StrategyA Red Ocean is an ocean where there's a lot of competition, a lot of people fighting and a lot of blood in the water, which makes it really hard to sell […]
• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.
• Go To Market Strategies for Tech Consulting Services
  The survival of your tech consulting business depends largely on having a working go-to-market strategy that oversees the successful launch of your services.

SaaS + Software Stats

• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
• Analysed 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
• Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc
• Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.
• 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
• 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

SaaS & Tech Growth Strategy Stats

• Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50
• The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
• A 1% increase in pricing strategy yields an average 11% increase in profit
• 54% treat upselling and add-on sales as high priority
• 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
• Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.
• The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025
• 36% of SaaS businesses managed to reduce their revenue churn over the last 12-months
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing