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

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).

SaaS & Tech Growth Strategy Articles

• Marketing Strategy vs. Marketing Plan
  So you’ve tried every marketing tip in the book, and you still aren’t seeing results. You’ve started a blog, engaged on social media, made videos, and done everything else you’ve been recommended. Despite your extensive efforts, you haven’t seen any increase in your business. So what’s the problem? The problem probably isn’t what you’re doing, […]
• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• 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.
• 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 […]
• 7 Key SaaS Growth Strategies
  Customers aren't just going to appear; marketing teams need to proactively reach them in creative ways. In the current marketing landscape, brands have a near limitless number of ways to reach potential customers.
• 7 Ways to Use Digital Sales Rooms for Killer Closing
  7 Ways to Use Digital Sales Rooms for Killer ClosingA digital sales room is sales enablement platform that collects and provides information, tools, and resources to help salespeople close more deals. Digital sales rooms provide a centralized platform for sales teams to access the resources they need to do their jobs efficiently. These rooms can […]
• Defining Your Brand Voice
  Have you defined your brand voice? Andy shares his thoughts on why it’s important for you to define your brand voice in your marketing.
• How Technology Companies Can Leverage Focused Niche Markets
  How B2B SaaS Companies Can Leverage Focused Niche MarketingAs the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other's throats all the time for survival. It's all about 'survival of the fittest. […]
• Create a Tangible Strategic Vision
  When it comes to creating a strategic vision for your business, a few elements likely pop into mind, such as a mission, your values or your core beliefs. While all of these factors are important, business owners can forget one very important one - making your business tangible.Look up the definition of this word and […]

SaaS + Software Stats

• 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
• The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year
• The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn
• The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year
• If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer
• SaaS solutions have the highest security features with 95% security failures due to human error
• 54% treat upselling and add-on sales as high priority
• More than 1/2 of SAAS companies increased their spending on customer retention last year
• The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

SaaS & Tech Growth Strategy Stats

• Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50
• It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.
• Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less
• In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.
• 55% of SaaS companies rate Customer Retention as the key metric to measure
• In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.
• Customer Segmentation analysis will help point out which are your most profitable segments
• Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013
• It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR