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

From For
Statistic in SaaS & Tech Growth Strategy

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).

More SaaS + Software Stats

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Customer Segmentation analysis will help point out which are your most profitable segments

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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 SaaS & Tech Growth Strategy Stats

Customer Segmentation analysis will help point out which are your most profitable segments

SaaS IPOs have more than doubled over the last 12 years

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

Cloud application services (SaaS) to reach $126 billions by the end of 2021

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.