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Revisiting the 2019 KeyBanc Capital Markets SaaS Survey Results

By Jeff Breunsbach

KeyBanc released its 10th annual SaaS survey which was conducted in 2019 to provide useful operational and financial benchmarking data to executives and investors in SaaS companies.

As we read through the survey results, we've pulled out some key statistics that we reference with our clients on a regular basis. This type of benchmarking allows organizations to understand where they might sit in the market, albeit industry, complexity, maturity, etc. still need to be considered.

  • 37% of Gross New ARR Bookings were from Upsells and Expansions
  • As you increase past $50MM in ARR, Upsells and Expansion become a greater part of your growth (42% for ARR between 50-100MM) and 50% for ARR greater than 100MM
KeyBanc Capital Markets SaaS Survey Results Slide 3
KeyBanc Capital Markets SaaS Survey Results Slide 15

It costs you $0.78 to upsell a customer and costs you $0.50 to expand a customer; meanwhile, it costs you $1.34 to acquire a new customer. This trend continues to be clear: the LTV of a customer in a SaaS model is predicated on your ability to provide a proper customer experience and value.

KeyBanc Capital Markets SaaS Survey Results Slide 26

On average with a blended CAC ratio and considering gross margin, it takes an organization roughly 17 months for a payback period. That increases to 20 months when you solely consider new customers. Have you planned out the first 20 months of your customer journey?

KeyBanc Capital Markets SaaS Survey Results Slide 27

The media gross dollar churn rate is 12.9%, as you get contract sizes that eclipse $100k then your median gross dollar churn drops to 9.8%.

KeyBanc Capital Markets SaaS Survey Results Slide 57

There are more nuggets to be found throughout the report, but these are referenced quite often as we engage with customers. The data continues to support:

  • A prescriptive, proactive customer journey
  • Value-driven customer success engagement
  • Proper segmentation and identification of the ideal customer profile

Credit to KeyBanc Capital Markets and their SaaS Survey Results

Published March 23, 2020
About the Author

Jeff serves as the Director of Accounts, overseeing business operations and ensuring the delivery and quality of all client engagements with numerous B2B SaaS clients to drive revenue growth through customer success strategy and execution. See full bio ›

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