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 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

Three uses for the SaaS Guidelines

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

Internet Sales strategies have a significantly lower CAC of just $0.42

When venture capitalists participate in seed rounds, the average round size is 3x larger

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

SaaS IPOs have more than doubled over the last 12 years

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

More Growth Strategy Stats

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

Improve Your Pricing Schedule And Turn More Profit

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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