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SaaS Applications Sales Model Starts to Mature

SaaS sales tracking SaaS Applications Sales Model Starts to Mature A new survey finds SaaS applications providers investing more in sales enablement. A little more than half those polled invested in customer retention programs. SaaS Application Revenue Growth 150 out of just over 300 SaaS application providers saw revenue growth of 10% to 50%. Just […]

Written By

Michael Vizard

Apr 15, 2016

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SaaS sales tracking

SaaS Applications Sales Model Starts to Mature

A new survey finds SaaS applications providers investing more in sales enablement. A little more than half those polled invested in customer retention programs.

SaaS Application Revenue Growth

150 out of just over 300 SaaS application providers saw revenue growth of 10% to 50%. Just over 100 had revenue growth of 50% or more.

SaaS Application Vendor Priorities

A full 89% cited new customer acquisition, 59% cited customer renewals and 46% cited up-sell/add-on sales to existing customers.

New Customer Acquisition Metrics Tracked

A total of 84% track Website unique visitors, 66% track new sign-ups and trials, and 56% track conversion rates as well customer acquisition costs.

Existing Customer Metrics Tracked

Eight in 10 (80%) track customer churn, 63% track product usage, 58% track add-on sales and 54% track revenue per user.

Metrics Plan to Track

Just over half (55%) plan to track customer retention rates, 46% want to track customer health, 45% customer lifecycle and 37% customer acquisition costs. A full 44% say they are not satisfied with their existing SaaS metrics.

Rate of Customer Churn

Three in 10 (30%) report an increase in churn, while 36% said it decreased.

Spending on Customer Retention

Well over two-thirds (69%) increased headcount, 58% invested in systems and technology, and just over half (52%) invested in retention programs.

Rate at Which Customer Health Is Tracked

About one-fifth (21%) track customer usage and satisfaction on a daily basis, 29% track it weekly and 29% track it monthly.

Driving More Revenue per Customer Engagement

Just over a quarter (28%) report increased revenue from up-sell and add-on sales from existing customers, but only 14% report an increase of 40% or more in revenue from these efforts.

Business Generated From Free Trials

Only 27% said half or more of their business comes from free trials, while 38% have no freemium program.

Michael Vizard

Michael Vizard is a seasoned IT journalist, with nearly 30 years of experience writing and editing about enterprise IT issues. He is a writer for publications including Programmableweb, IT Business Edge, CIOinsight, Channel Insider and UBM Tech. He formerly was editorial director for Ziff-Davis Enterprise, where he launched the company’s custom content division, and has also served as editor in chief for CRN and InfoWorld. He also has held editorial positions at PC Week, Computerworld and Digital Review.

SaaS Applications Sales Model Starts to Mature

Michael Vizard

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