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Compared with previous surveys, field sales lagged inside sales by a greater amount this year (6% in 2015 vs. an insignificant 2% difference in 2014). Median growth among field sales dominated companies slightly lagged inside sales dominated companies (by 6% points), but led internet sales by 8% points. Channel sales dominated companies grew significantly faster, though the data is sparse. Mixed also performed well.

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More SaaS + Software Stats

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

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

How To Make Pricing A Constant Process In Your Organization

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

More Growth Strategy Stats

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

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

How to Reduce Churn

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

56% treat “Existing Customer Renewals” as high priority