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

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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Companies with longer contracts (2+ years) reported the lowest annual unit churn

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Software and online services are in a period of dizzying growth

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

More Growth Strategy Stats

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Invention is 10% inspiration and 90% perspiration.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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