Statistic Info

Cost of Customer Acquisition is About 11 Months’ of Revenue The median startup spends about 92% of first year average contract value on the sale, implying an 11 month payback period on the CAC. An additional months’ revenue is required to upsell a customer and about the same is required to close a renewal.

Tomasz Tonguz

More Tech Services Stats

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

Analysed 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

There are around 3.8 million e-commerce sites in the USA

Women in western countries use the internet 17 percent more than their male counterparts

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

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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

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

More Growth Strategy Stats

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

Internet Sales strategies have a significantly lower CAC of just $0.42

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

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence