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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

63 percent of the time, women receive lower salary offers than men for the same job at the same company

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

There are around 3.8 million e-commerce sites in the USA

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

More Growth Strategy Stats

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

After $10M in ARR, the median growth rate slows to just under 50%

More than 1/2 of SAAS companies increased their spending on customer retention last year

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide