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

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.

More SaaS + Software Stats

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

More Growth Strategy Stats

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

Software and online services are in a period of dizzying growth

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

At Facebook, 15 percent of tech roles are staffed by women

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

A 1% increase in pricing strategy yields an average 11% increase in profit