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

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.

SaaS & Tech Growth Strategy Articles

• SaaS Trends and Stats You Must Know in 2022
  SaaS Trends and Stats You Must Know in 2022SaaS in 2022 will be a year of growth and innovation with heavy focus on the customer experience. With the impact of COVID-19 on every area of business and consumer needs changing, the SaaS industry underwent radical but essential change throughout 2020 and 2021 To succeed, companies […]
• 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.
• How Technology Companies Can Leverage Focused Niche Markets
  How B2B SaaS Companies Can Leverage Focused Niche MarketingAs the world advances more and more toward consistent innovation, B2B SaaS companies are finding it harder to survive in the market. The market is so competitive that technology companies are at each other's throats all the time for survival. It's all about 'survival of the fittest. […]
• Take AIM: How to Target the Right Audience
  Steps needed to establish and reach your target audience.
• 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 […]
• The Importance of a Business Plan
  Before you can begin putting together an effective marketing plan, it’s important to make sure you have a business plan in place. Today Andy talks about understanding the long term and short term goals and objectives of your business, before you start planning your marketing. One of the things I wanted to talk about today […]
• Go To Market Strategies for Tech Consulting Services
  The survival of your tech consulting business depends largely on having a working go-to-market strategy that oversees the successful launch of your services.
• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.
• 10 Reasons Your Customers Are Churning
  Churn is a death knell for any business. Make sure you aren't making any of these common reasons your customers are churning.

SaaS + Software Stats

• For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time
• Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50
• More than 1/2 of SAAS companies increased their spending on customer retention last year
• SaaS businesses face significant losses in the early years (and often an associated cash flow problem)
• Growing faster has twice as much impact on share price as improving margins
• Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015
• Cloud-hosted applications have a 99% uptime
• SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

SaaS & Tech Growth Strategy Stats

• More than 1/2 of SAAS companies increased their spending on customer retention last year
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing
• They may forget what you said, but they will never forget how you made them feel.
• 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%
• Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month
• SAAS companies that are focused mainly on enterprise sales have higher levels of professional services
• Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases
• How To Make Pricing A Constant Process In Your Organization
• Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)