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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

At Twitter, 10 percent of tech roles are staffed by women

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Customer Segmentation analysis will help point out which are your most profitable segments

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

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

Google only has a 30 percent female workforce

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

More Growth Strategy Stats

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

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

Growing faster has twice as much impact on share price as improving margins

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer