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In comparison to previous surveys, it appears there is more confidence in inside sales in the $1K-$25K range.

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More SaaS + Software Stats

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

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

More Growth Strategy Stats

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

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%

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

After $10M in ARR, the median growth rate slows to just under 50%

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time