Statistic Info

IT Services Market

A key sub-sector of the larger information technology industry, the IT Services market brings in hundreds of millions of dollars each year, with forecasts suggesting that this number will eclipse the one trillion dollar mark in the near future. Unsurprisingly, given the amount of major tech companies located in the United States, North America is the highest regional consumer of IT services. Digitalization, along with essentially constant technological advancement, means that businesses in nearly every industry rely on IT services and market spending continues to grow steadily each year.

Statista

More SaaS + Software Stats

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

More Growth Strategy Stats

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

Software and online services are in a period of dizzying growth

Internet Sales strategies have a significantly lower CAC of just $0.42

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

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

Invention is 10% inspiration and 90% perspiration.

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)