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

SaaS + Software
Statistic in Growth Strategy

Statistic Info

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.

RJMetrics

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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

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Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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