The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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).

SaaS & Tech Growth Strategy Articles

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• Creating A Strategic Marketing Approach for Software & Technology Companies
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• The Culture Gap
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  We've all played the telephone game.

SaaS + Software Stats

• If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer
• The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
• Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
• SAAS companies that are focused mainly on enterprise sales have higher levels of professional services
• SaaS organizations are now operating in over 100 countries
• Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases
• How to Reduce Churn
• 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
• Cloud application services are expected to grow at an average annual rate of 18.5% through 2025

SaaS & Tech Growth Strategy Stats

• 86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available
• When venture capitalists participate in seed rounds, the average round size is 3x larger
• In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.
• SAAS companies that are focused mainly on enterprise sales have higher levels of professional services
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business
• The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost
• A 1% increase in pricing strategy yields an average 11% increase in profit
• High-growth companies generate 60% fewer sales opportunities than low-growth companies
• At Facebook, 15 percent of tech roles are staffed by women