Quote Info

Overall, the median company devotes 30% of their CAC to marketing expenses, with the remainder allocated to sales. However, internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing. Besides a slight shift towards greater marketing spend by field sales companies, the results are largely consistent with last year’s results.

For Entrepreneurs.com

More SaaS + Software Stats

Negative Churn and Expansion Revenue

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

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

How to Reduce Churn

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

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

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

More Growth Strategy Stats

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

SaaS IPOs have more than doubled over the last 12 years

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017