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 TonguzCloud application services (SaaS) to reach $126 billions by the end of 2021
Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000
When venture capitalists participate in seed rounds, the average round size is 3x larger
Cloud-hosted applications have a 99% uptime
Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)
In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million
Companies with longer contracts (2+ years) reported the lowest annual unit churn
After $10M in ARR, the median growth rate slows to just under 50%
More than two thirds of SAAS companies experienced annual churn rates of 5% or higher