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%)

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If you haven’t done so yet, it’s time to establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals. Then lock these goals in with a service-level agreement between your marketing and sales teams.

From here, clearly define how many marketing-qualified leads must be delivered to the sales team in a given month along with what percentage of those will become sales-qualified, then opportunities, then customers. These metrics will allow you to determine how many account executives will be needed for the sales team when factoring monthly quotas and quota-attainment percentages. It will also help you determine how many visitors and leads the marketing team needs to generate to hit its goals by working backwards from these metrics.

More SaaS + Software Stats

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%

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

Negative Churn and Expansion Revenue

Analysed 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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

More Growth Strategy Stats

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

When venture capitalists participate in seed rounds, the average round size is 3x larger

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

High-growth companies generate 60% fewer sales opportunities than low-growth companies

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14