• SaaS Customer Acquisition – Statistics and Trends

    SaaS customer acquisition

    Growth rates for the Software as a Service business model are inspiring high.

    You can just check the astounding Dropbox 3900% growth over 15 months, reaching over $1 billion in annual revenue run rate in 2017. Or Slack’s 63% paid seat growth in 5.5 months. Or Zendesk’s dollar-based net expansion rate of 115% during the fourth quarter of 2016. But SaaS companies need to grow at these impressive rates.

    Unlike companies in other industries, which would happily welcome a 20% annual growth, a software company growing at 20% annually has a 92% chance of extinction within a few years.

    To help you benchmark your marketing efforts and focus points in driving growth, our new infographic on SaaS Customer Acquisition brings the top growth activities for SaaS business, the most commonly tracked metrics, as well as the investments on customer retention.

    SaaS Customer Acquisition - Statistics and Trends

    Infographic by- Invespcro.com

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    You will also find out that not requiring a credit card for sign-up generates double the customers from free trials.

    The likelihood of a trial user becoming a paying customer increases as well, by 70%, when sales reps contact the users. 89% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority followed by 59% who treat “Existing Customer Renewals” and 46% who treat upselling and add-on sales as high priority.

    Top Customer Acquisition Metrics Tracked by SaaS Businesses

    Metrics%age
    Website unique visitors84%
    Number of new trials or Free Sign Up66%
    Conversion rates (free to Paying)56%
    Customer acquisition cost56%

     

    Percentage of New Businesses that come from Free Trial and Freemium

    Percentage of New Business%age of SaaS Businesses
    0-10%18%
    10-25%17%
    26-50%11%
    Greater than 50%16%
    No Free Trial38%

    SaaS companies that allow sign-ups without a credit card generate twice as many paying customers from their free trial.

    Active trial users that are contacted by a sales rep are 70% more likely to buy the paid service than those that aren’t.

    44% of SaaS companies offer a free trial Out of which 41% use a 30-day trial

    52% of SaaS companies increased their spending on customer retention last year.

    50% of paying customers log in to their SaaS service less than once a month (or not at all)

    SaaS Usage Frequency by Paying Customer

    Usage Frequency%age of customers
    Less than once a month50%
    Less than once a Week19%
    Weekly14%
    Daily17%

Khalid Saleh

Khalid Saleh is CEO and co-founder of Invesp. He is the co-author of Amazon.com bestselling book: "Conversion Optimization: The Art and Science of Converting Visitors into Customers." Khalid is an in-demand speaker who has presented at such industry events as SMX, SES, PubCon, Emetrics, ACCM and DMA, among others.

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Khalid Saleh

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