Statistic Info
This has a huge impact on unit economics and begins to explain why winning companies place such a large focus on upsells as they mature. The bigger your customer base, the bigger the opportunity to move the needle through upsells.
Upsells aren’t always easy, and depending on the dynamics of your business model they may not even seem like an option. I believe the average company focuses so much on growth through new accounts because that path seems larger, more obvious, and, frankly, easier. But, as we all know, oftentimes the hard thing to do and the right thing to do are one in the same.
RJMetrics
More SaaS + Software Stats
The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
The median annual unit churn for SAAS companies was 10% in 2016
More Growth Strategy Stats
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million
Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18