This is a complete list of up-to-date SaaS marketing statistics.
On this page, you’ll find hand-picked
statistics categorized by:
Let’s dive into the stats!
01.
SaaS marketing budget and spend statistics can give you an understanding of what others are spending on and which techniques tend to be working for other organizations.
Get a look into the numbers to see how your SaaS organization’s spending and marketing budget stack up against the averages.
01. About 48% of businesses using SaaS apps have an average contract of one year, while 13% go month-to-month, and 11% have a contract of three years or more. (KBCM Technology Group)
02. The median startup spends about 92% of its average contract value on a sale, which creates a payback period of 11 months on the customer acquisition cost. (Tom Tunguz)
03. On average, $1.32 is spent to create $1 of annual recurring revenue. Using upselling with existing customers can bring this number down to $0.71. (KBCM Technology Group)
04. As far back as 2016, the average SaaS company was spending anywhere from 15 to 25% of revenue on marketing activities. Spending more often led to better growth rates. (SaaS Capital)
05. In the first three years, most SaaS companies spend from 80 to 120% of revenue on marketing, while that drops down to 40 to 50% by the end of year five. (ClearPivot)
06. On average, SaaS companies spend anywhere from $342,000 to $1,080,000 per year on content marketing. (First Page Sage)
02.
Knowing the basic statistics related to sales and marketing is important for any SaaS business. It can provide information on where SaaS is being used the most and where high growth is expected to continue.
Find out more about how marketing and sales stand so you can make the best possible decisions about your own company and the direction to move in.
07. When looking at the adoption of SaaS, the most mature market is located in North America. (Markets and Markets)
08. The highest rate of growth expected in the future will be found in North America as well as Asia Pacific locations. (Markets and Markets)
09. In 2018, SaaS IPOs saw the best year up to that time. Seventeen new public vendors brought in $5.1 billion, which is double what was collected in the next highest year. (Battery)
10. At least 98% of the best-performing SaaS companies make use of blogs for marketing. (Business2Community)
11. About 85% of company blog traffic for SaaS companies is provided through organic search. (Animalz)
12. The use of educational blogs creates better traffic on company sites than pure news or PR blogs. (Cobloom)
13. The most popular types of content for customers from SaaS blogs are feature announcements at 22%. Tech walkthroughs (18%) and landing pages (15%) are also in the top three. (Ryan Berg)
14. Original research, landing pages, and help articles tend to receive the largest number of backlinks compared to other types of pages. (Cobloom)
15. Compared to other posting schedules, publishing twice to four times a week has the best results in terms of inbound marketing efforts. (Marketing Insider Group)
16. Blogs are a popular content method for marketing and sales, but many SaaS companies use other items. About 65% use webinars, 62% include case studies, and 18% have podcasts. (Business2Community)
03.
Looking at SaaS growth statistics can give you insight into how and where people are using SaaS applications. This can give you an idea of how things are changing and what direction to move your marketing in.
Location and sectors within SaaS can have a major effect on what success looks like and how you can expect things to go as your business moves into the future.
17. From 2015 to 2022, the SaaS industry has grown from $31.5 billion to an estimated nearly $172 billion and five times growth in less than a decade. (Gartner)
18. Between now and 2025, Germany is expected to have the largest growth in the SaaS market. In 2020, the market was worth about €6.85 billion but may climb to €16.3 over the next three years. (Statista)
19. This year, SaaS expenditures for Australian end-users are expected to grow to about $365 million. In 2019, this number was at about $305 million. (Gartner)
20. Growth in SaaS in Latin America is expected to reach $5 billion in 2022. From 2017 to 2021, there was an increase from about $1.5 billion to over $4 billion. (Research and Markets)
21. In the IT security market, the fastest growing segment is cloud security. It is expected to grow over 41% across the course of the year. (Gartner)
22. The SaaS market is growing by 18% every year, with almost 78% of small businesses already invested in some SaaS options. (Markets and Markets)
23. The SaaS application with the highest growth rate is Zoom, which experienced a 420% increase in value. It added $88 billion to its market cap. (Mike Sonders)
24. From 2015 to 2017, the amount of SaaS apps used on average by various companies moved from eight to 16 for a true doubling of use. (BetterCloud)
25. Since 2010, the amount spent by a company on SaaS applications has increased every single year. (Blissfully)
26. From 2007 to 2017, the number of SaaS apps for marketing grew from 500 to more than 8,500. (PriceIntelligently)
27. SaaS applications make up about 70% of company software use, with expectations that they will reach 85% by 2025. (BetterCloud)
04.
Looking at revenue and sales can give an idea of just how large the SaaS sector is and who the largest competitors in the industry are.
Take a look at the numbers to see the growth happening today and find ways you can ensure the best results for your company as you move forward with the introduction of new services or features.
28. Across 2018, SaaS companies were able to generate $72.2 billion. (Gartner)
29. Globally, the SaaS market revenue reached and surpassed a massive $113.3 billion in 2021. (Gartner)
30. Looking only at the revenue of companies, Microsoft maintains an 18% market share (and generated $15 billion over 2021), which makes it the most extensive supplier of SaaS services around the globe. In second place is Salesforce at 11.5%, while Adobe pulls third at 6.7%. (Synergy Research Group)
31. In the major European markets, the SaaS industry value is expected to increase by at least two times. The largest markets are Germany, France, Italy, the Netherlands, and Belgium, with revenue of between €1.6 and €16.3 billion expected in 2025. (Statista)
32. Based on current projections, revenue between 2021 and 2022 is expected to be the highest yet, reaching almost $172 billion by the end of the year. (Gartner)
33. Annual “as a service” contract values have increased five times over the last six years. The number hit $2.1 billion in 2015 and has increased to over $11 billion in the first quarter of 2021. (Information Services Group)
05.
The churn rate looks at how many people end a subscription or quit doing business with a company in a certain time period. Looking at churn statistics lets you learn how your rate stands up to other companies.
Keeping churn rate as low as possible is recommended, but a zero number is unlikely to be possible; look into what’s average for companies like yours and find ways to improve.
34. When acquiring enterprise organizations, yearly custom churn rates may range from 6 to 10%, while the number can reach nearly 60% when largely focusing on small and medium-sized businesses. (Tom Tunguz)
35. Based on a company survey, the average churn rate to be expected from SaaS businesses is just over 13%. (KBCM Technology Group)
36. When measuring based on customers or revenue, the acceptable average churn over a year is between 5 and 7%. This calculates to around a 0.5% churn rate each month. (Sixteen Ventures)
37. Overall churn rate of various SaaS businesses is about 4.79%, but many consider 3% or less the best rate to strive for. B2C companies tend to have a higher churn rate than B2B organizations. (Messaged)
38. An annual rate of 90% is excellent for small and medium business retention, while the industry median is 100%. Hitting 125% retention indicates a very strong business, while the top end caps out at around 150%. (Messaged)
06.
Several SaaS pricing statistics that help you determine what strategies work for others and my work for your own company.
39. The best number of paid packages stands at three. Too many or too few products can lose or confuse customers. (2Checkout)
40. As of today, 50% of SaaS companies are still relying on a form of user-based pricing. (Cobloom)
41. On average, the most common length of a free trial sits at one month. (Cobloom)
42. Approximately 30% of SaaS companies charge based on usage, not users. (OpenView Venture Partners)
43. Forty percent of companies offer SaaS use a value-based approach to determine service prices. (OpenView Venture Partners)
07.
The statistics below look at the way SaaS has impacted business and customers as well as the workplace as a whole.
44. Companies that run entirely on SaaS use an average of 34 apps, which is more than two times what is found in traditional spaces. (BetterCloud)
45. Of all companies surveyed, almost 40% indicated they were running nearly completely using SaaS technology. (BetterCloud)
46. Looking at active free trial users, around 70% were likely to move into paid status upon being contacted. (Invespcro)
48. In companies using almost all SaaS apps, superior employee engagement was indicated. Over 85% of end-users note SaaS helped success more than alternative technology. (BetterCloud)
48. One of the most far-reaching SaaS companies around the globe, Salesforce, was ranked the top business to work for in the United States. (Fortune)
49. In 2017, the number of SaaS applications used increased by about 33% from the last year. In 2020, 73% of companies noted nearly all their apps were or would be SaaS. (BetterCloud)
