While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Statistic Info

Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

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Customer Segmentation analysis will help point out which are your most profitable segments

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

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

Software and online services are in a period of dizzying growth

55% of SaaS companies rate Customer Retention as the key metric to measure

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

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Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

Is your SaaS business viable?

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

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

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

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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