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

From RJMetrics
Statistic in Market Research

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 SaaS + Software Stats

54% treat upselling and add-on sales as high priority

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

How to Reduce Churn

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 global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

Improve Your Pricing Schedule And Turn More Profit

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

More Market Research Stats

54% treat upselling and add-on sales as high priority

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

SaaS solutions have the highest security features with 95% security failures due to human error

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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

Cloud application services (SaaS) to reach $126 billions by the end of 2021

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%

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.