The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

SaaS & Tech Growth Strategy Articles

• How To Get a Head Start on Marketing Your Product
  When developing a new product or service many people don’t think to begin their marketing ahead of time. Doing this can greatly increase your chances for success. In this insight Andy shares a few ways you can get your product out to your audience before it launches. Did you like this insight? Make sure you […]
• What Is MRR
  The simple answer is that MRR is your Monthly Recurring Revenue and one of the key metrics that SaaS companies use to evaluate success.
• Brand Strategy Framework
  A Framework for Creating A Smart Brand StrategyA brand is so much more than a logo.It's what makes you unique and how you communicate that to prospects, customers, and employees to inspire them to take action.We've developed a Brand Strategy Framework to drive marketing, sales, recruiting, and raising capital.A smart Brand Strategy is central to […]
• Everything You Need to Know About SaaS Affiliate Programs and How to Implement it Into Your Product-Led Growth Strategy.
  SaaS Affiliate Programs: Everything You Need to Know About and How to Implement it Into Your Product-Led Growth Strategy.Generating trial users and acquiring customers for your SaaS business can be a frustrating challenge. If you're looking for new ways to grow your business, you may have heard of affiliate marketing and wondered how it can […]
• 13 Strategies to Boost SaaS User Retention and Renewals
  Improving your retention rate can mean the difference between growing your company and running it into the ground. Read specific strategies you can use to improve your SaaS retention rate.
• 6 Steps For Optimizing Your SaaS Sales Strategy
  Understand your sales process to help build a better funnel, and guide leads through it.
• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.
• The Culture Gap
  What is the Culture Gap? Andy explains the idea behind the Culture Gap and what you need to look out for to avoid it.
• Blue Ocean Strategy
  Today, Andy shares with us what a "Blue Ocean" strategy is and how to implement it in your business and marketing strategies. Blue Ocean StrategyA Red Ocean is an ocean where there's a lot of competition, a lot of people fighting and a lot of blood in the water, which makes it really hard to sell […]

SaaS + Software Stats

• 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
• SaaS IPOs have more than doubled over the last 12 years
• 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
• Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense
• The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions
• Cloud-hosted applications have a 99% uptime
• 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%
• Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business
• Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

SaaS & Tech Growth Strategy Stats

• The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year
• At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
• In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.
• Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense
• Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
• 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
• The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%
• Is your SaaS business viable?
• The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year