The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

As expected, many of the fastest growing companies are among the smallest. Eliminating them brings median growth rates down ~10 percentage points. Median growth rates are consistent with last year’s results. However, this year’s respondent pool was more evenly distributed.

Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

SaaS & Tech Growth Strategy Articles

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• Segmentation, Targeting, and Positioning
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• Marketing Strategy vs. Marketing Plan
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• 10 Reasons Your Customers Are Churning
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SaaS + Software Stats

• Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?
• High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
• How to Reduce Churn
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
• Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015
• The fastest growing SaaS companies raise an average of $9.5M in Series A funding
• When venture capitalists participate in seed rounds, the average round size is 3x larger
• If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn
• SaaS companies in the $7.5MM-$15MM range are among the fastest growers

SaaS & Tech Growth Strategy Stats

• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?
• Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
• The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
• Companies with longer contracts (2+ years) reported the lowest annual unit churn
• In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%
• 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%
• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs
• It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue