Quote Info

Pricing/Upsell/Cross Sell

  • Multi-axis pricing
  • Additional product modules (easier to sell more to existing customers than it is to sell to brand new customers)
For Entrepreneurs.com

More SaaS + Software Stats

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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%

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

More Growth Strategy Stats

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

SaaS IPOs have more than doubled over the last 12 years

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

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

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

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

Negative Churn and Expansion Revenue