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

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

SaaS organizations are now operating in over 100 countries

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Is your SaaS business viable?

More Growth Strategy Stats

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

How Often Should The Pricing Committee Be Meeting And Making Changes?

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

SaaS organizations are now operating in over 100 countries

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

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