Statistic Info

Respondents (excluding the smallest companies) spent a median $1.13 to acquire each dollar of new ACV from a new customer. The result drops to $1.00 if we include companies with <$2.5MM in revenues. The median spend to acquire each dollar of new ACV from a new customer this year is similar to last year’s result of $1.18.

Note to regular ForEntrepreneurs readers: The way CAC is measured here is different than how I normally measure CAC (see SaaS Metrics 2.0 –  A Guide to Measuring and Improving What Matters). In those posts CAC is the average amount that it costs to acquire a single customer. In this survey, CAC is measured as the cost to acquire a dollar of ACV (annualized contract value).

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More SaaS + Software Stats

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

54% treat upselling and add-on sales as high priority

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

How to Reduce Churn

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

The median annual unit churn for SAAS companies was 10% in 2016

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

More Growth Strategy Stats

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

Women in western countries use the internet 17 percent more than their male counterparts

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

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%

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

September 19, 2019 Seminar

Driving Traffic To Generate Leads: Content Marketing, Paid Ads & SEO

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