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.

For Entrepreneurs.com

More SaaS + Software Stats

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

Is your SaaS business viable?

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

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%

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

More Growth Strategy Stats

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

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

56% treat “Existing Customer Renewals” as high priority

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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