The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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.

More SaaS + Software Stats

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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56% treat “Existing Customer Renewals” as high priority

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

In many SaaS businesses, sales reps play a key role in closing deals

More Growth Strategy Stats

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

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

SaaS IPOs have more than doubled over the last 12 years

80% of venture capital investments take place in the enterprise

Growth trumps all

A 1% increase in pricing strategy yields an average 11% increase in profit

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

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”