Statistic Info

The median result is notably higher than compared to previous surveys, where the $1.07 and $0.92 were reported in the 2014 and 2013, respectively. Respondents (excluding the smallest companies) spent a median of $1.18 to acquire each dollar of new ACV from a new customer. The result drops to $1.06 if we include companies with <$2.5MM in revenues.

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More SaaS + Software Stats

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

56% treat “Existing Customer Renewals” as high priority

The median annual unit churn for SAAS companies was 10% in 2016

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

73% of organizations indicated nearly all their apps will be SaaS by 2021

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

More than 1/2 of SAAS companies increased their spending on customer retention last year

More Growth Strategy Stats

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%

Customer Segmentation analysis will help point out which are your most profitable segments

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

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

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%

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

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

Invention is 10% inspiration and 90% perspiration.