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.

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More SaaS + Software Stats

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%)

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

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

The median annual unit churn for SAAS companies was 10% in 2016

80% of venture capital investments take place in the enterprise

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

How To Make Pricing A Constant Process In Your Organization

More Growth Strategy Stats

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

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

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

The median annual unit churn for SAAS companies was 10% in 2016

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

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