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.
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More than two thirds of SAAS companies experienced annual churn rates of 5% or higher
Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)
At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
54% treat upselling and add-on sales as high priority
Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network
SaaS solutions have the highest security features with 95% security failures due to human error