Quote Info

Upsells are a Secret to Growing the Business Twice as Fast The top 50% of growers generate more upsell business than their slower growing competitors. The difference in growth rates becomes more pronounced as the business scales into the $15M+ in annual revenue range where upselling companies grow more than twice as fast. In the early days of the business, net new account growth is a priority for most businesses but the growth rate data and CAC data indicate that upselling existing customers is an important and underemphasized key to growth.

Tomasz Tonguz

More SaaS + Software Stats

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

Three uses for the SaaS Guidelines

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

Is your SaaS business viable?

More Growth Strategy Stats

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

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

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

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

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