The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

SaaS + Software
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Many of the enterprises across verticals have adopted the work from home model to safeguard employee well-being and maintain operational efficiency, surging the demand for Software-as-a-Service (SaaS)-based collaboration solutions. For instance, Microsoft Team platform users increased to 44 million globally due to the high demand for collaboration solutions. While the standalone 8×8 Video Meetings cloud solution experienced a more than 300% increase in registered users in the last week of February across ~150 countries. Other popular SaaS-based collaboration tools gaining traction are Google Hangouts, Cisco Webex, Slack, Zoom, Ding Talk, WeChat Work, and Tencent Meeting, among others.

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In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

How To Make Pricing A Constant Process In Your Organization

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Growing faster has twice as much impact on share price as improving margins

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%

More SaaS & Tech Growth Strategy Stats

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

At Twitter, 10 percent of tech roles are staffed by women

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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