The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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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).

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80% of venture capital investments take place in the enterprise

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

How to Reduce Churn

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

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

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

More Growth Strategy Stats

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

How To Make Pricing A Constant Process In Your Organization

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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