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The phenomenon of longer contract terms for larger contracts is pretty clear. Companies in the “elephant hunter” group are less aggressively booking super long-term contracts. Respondents with >$250K median ACV book nearly 25% of their contracts at 3 years or longer (down from 35% in the 2015 group).

For Entrepreneurs.com

More SaaS + Software Stats

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

How to Reduce Churn

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

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

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

54% treat upselling and add-on sales as high priority

More Growth Strategy Stats

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

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

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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%)

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.