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

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.

SaaS & Tech Growth Strategy Articles

• Successful B2B SaaS Product Launch
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• Make Tactical Goals Part of Your Vision
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• How To Assess Your Brand, Website, Marketing & Competitors
  There are two things required to reach a destination - first to know where you want to go, but second to also know where you stand today.
• Segmentation, Targeting, and Positioning
  If you try to target everyone you end up not reaching anyone.
• 13 Strategies to Boost SaaS User Retention and Renewals
  Improving your retention rate can mean the difference between growing your company and running it into the ground. Read specific strategies you can use to improve your SaaS retention rate.
• 7 Key SaaS Growth Strategies
  Customers aren't just going to appear; marketing teams need to proactively reach them in creative ways. In the current marketing landscape, brands have a near limitless number of ways to reach potential customers.
• How To Get a Head Start on Marketing Your Product
  When developing a new product or service many people don’t think to begin their marketing ahead of time. Doing this can greatly increase your chances for success. In this insight Andy shares a few ways you can get your product out to your audience before it launches. Did you like this insight? Make sure you […]
• Marketing Strategy vs. Marketing Plan
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• The Vision Gap

SaaS + Software Stats

• More than two thirds of SAAS companies experienced annual churn rates of 5% or higher
• SaaS solutions have the highest security features with 95% security failures due to human error
• 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
• 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
• 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
• SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.
• A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses
• If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

SaaS & Tech Growth Strategy Stats

• Improve Your Pricing Schedule And Turn More Profit
• Software and online services are in a period of dizzying growth
• 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%
• At Twitter, 10 percent of tech roles are staffed by women
• They may forget what you said, but they will never forget how you made them feel.
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
• Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network
• 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 venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms