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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Three uses for the SaaS Guidelines

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Analyzed 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

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

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

More Growth Strategy Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Negative Churn and Expansion Revenue

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

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.

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

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

How to Reduce Churn

Invention is 10% inspiration and 90% perspiration.

September 19, 2019 Seminar

Driving Traffic To Generate Leads: Content Marketing, Paid Ads & SEO

If your business if starving for new leads but struggling with all of the noise, rising costs, and a rapidly changing landscape of the digital marketing world, this seminar will equip you with what you need to gain momentum and leave with an actionable gameplan.


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