The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

Statistic Info

This has a huge impact on unit economics and begins to explain why winning companies place such a large focus on upsells as they mature. The bigger your customer base, the bigger the opportunity to move the needle through upsells.

Upsells aren’t always easy, and depending on the dynamics of your business model they may not even seem like an option. I believe the average company focuses so much on growth through new accounts because that path seems larger, more obvious, and, frankly, easier. But, as we all know, oftentimes the hard thing to do and the right thing to do are one in the same.

More Market Research Stats

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

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%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

Over the past five years, the Global Biotechnology industry has grown by 2.0% to reach revenue of $301bn in 2019.