The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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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.

More SaaS + Software Stats

Growth happens in phases

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

What Levers are available to drive Growth

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

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

Revenue Churn vs Customer Churn – why are they different?

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

Growth matters more than margin or cost structure

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

More Growth Strategy Stats

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

Google only has a 30 percent female workforce

47% of millennials want to work at diverse companies, according to a recent study.

How to Reduce Churn

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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