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.

RJMetrics

More SaaS + Software Stats

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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%

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

After $10M in ARR, the median growth rate slows to just under 50%

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

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

More Growth Strategy Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

Analyzed 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

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