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

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.

More SaaS + Software Stats

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

56% treat “Existing Customer Renewals” as high priority

80% of venture capital investments take place in the enterprise

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Improve Your Pricing Schedule And Turn More Profit

More Growth Strategy Stats

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

How To Make Pricing A Constant Process In Your Organization

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

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

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 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.