SaaS solutions have the highest security features with 95% security failures due to human error Quote / Stat
The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025 Quote / Stat
Investment in marketing automation tools is expected to reach $25 billion by the year 2023 Quote / Stat
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 Quote / Stat
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 Quote / Stat
For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time Quote / Stat
As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x Quote / Stat
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 Quote / Stat
The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month Quote / Stat
A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses Quote / Stat
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs Quote / Stat
As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn Quote / Stat
In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20% Quote / Stat
The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100% Quote / Stat
Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month Quote / Stat
Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale Quote / Stat
The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn Quote / Stat
High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%. Quote / Stat
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies Quote / Stat
The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost Quote / Stat
It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue Quote / Stat
It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue Quote / Stat
It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR Quote / Stat
The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year Quote / Stat
Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50 Quote / Stat
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 Quote / Stat
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million Quote / Stat
When venture capitalists participate in seed rounds, the average round size is 3x larger Quote / Stat
All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing Quote / Stat
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 Quote / Stat
The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11% Quote / Stat
The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers Quote / Stat
Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015 Quote / Stat
To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14 Quote / Stat
Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases Quote / Stat
51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution Quote / Stat