Statistic Info

Pricing is the most important lever in your business. True, we’re a bit biased given we work with pricing all day, every day. However, think about the fact that everything you do in your business, from sales and marketing to your product and support, works to drive people to your pricing page, convert them, and keep them around as loyal customers.

Yet, we’ve found that companies only spend 6 hours on their pricing strategy in the entire history of their business. Not six hours a year. Not six hours a quarter. Six hours total. That’s kind of like trying to power a jet with a steam engine.

 

PriceIntelligently

More Tech Services Stats

56% treat “Existing Customer Renewals” as high priority

53% of marketers say “no” to projects never or just a few times a year, while another 26% simply don’t have the authority to say “no” at all

When venture capitalists participate in seed rounds, the average round size is 3x larger

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

More Growth Strategy Stats

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

80% of venture capital investments take place in the enterprise

Software and online services are in a period of dizzying growth

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013