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

From RJMetrics
Statistic in Market Research

Companies in the $40-75MM revenue range attribute twice as much new revenue to upsells as the median company.

There are a number of reasons why we might see this effect in later-stage companies. One unexciting possibility is that their overall growth in new business is slowing down and it’s skewing these percentages in favor of upsells. Let’s look at this data through another lens and explore how upsells are related to growth.

More SaaS + Software Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

More Market Research Stats

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Over the past five years, the Global Biotechnology industry has grown by 2.0% to reach revenue of $301bn in 2019.

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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