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

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.

Market Research Articles

• Managing KPIs with Analytics
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• How To Assess Your Brand, Website, Marketing & Competitors
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• Tips for Interpreting Analytics Data
  Having a wealth of data at your fingertips is never a bad thing, but it's a good idea to be cautious when interpreting it. Sometimes the data can actually be misleading.The Trouble with Bounce RateAs Andy mentions in the video, bounce rate is a metric that has to be looked at in context. A target […]
• SaaS SEO Trends and Strategies to Watch in 2023
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• An Analytics Primer
  Analytics can be very intimidating. There is so much information that its far too easy to get lost in a a sea of numbers and charts, but once you get past the relatively steep leaning curve, you will discover that it is an incredible asset to your business.Analytics can tell you where your web traffic […]
• Segmentation, Targeting, and Positioning
  If you try to target everyone you end up not reaching anyone.
• Driving ROI from Google Analytics
  The how-to tutorial on understanding and utilizing Google Analytics to improve conversion, search optimization, engagement and overall better online marketing.
• Custom Analytics Dashboards
  There is an overwhelming amount of data in analytics, so Google has made it possible to create custom dashboards so you don't have to thumb through a ton of irrelevant information. You can create multiple dashboards for different roles or departments. We'll walk through creating a dashboard called "content marketing" step-by-step.Getting StartedIn the reporting tab, […]
• The Basics of Analyzing Your Audience
  As audience analysis month draws to a close, Rick goes over the basics to make sure we understand the goals and importance of taking time to analyze your audience. It’s audience analysis month here at Insivia, so lets go over some of the basics and make sure you understand the importance of analyzing your audience. […]

SaaS + Software Stats

• 73% of organizations indicated nearly all their apps will be SaaS by 2021
• 80% of venture capital investments take place in the enterprise
• 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
• 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
• The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer
• Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing
• High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.
• SaaS IPOs have more than doubled over the last 12 years
• The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Market Research Stats

• The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer
• 86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
• Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network
• 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
• 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.
• In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.
• Cloud application services are expected to grow at an average annual rate of 18.5% through 2025
• Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added