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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

54% treat upselling and add-on sales as high priority

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

More Growth Strategy Stats

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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 median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

The average SaaS company spends just 6 hours determining their pricing strategy

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

80% of venture capital investments take place in the enterprise

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