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When discussing SaaS products, we usually think of various inbound marketing tools. Companies use these programs to improve their content marketing, social media marketing, email marketing, and brand awareness. However, you can also use SaaS for accounting, logistics, finances, etc.
SaaS marketing statistics provide deeper insights into this intriguing industry. By checking the data in this article, you’ll quickly realize how important these companies are for the global economy. You can learn a few things about their business strategies and methodology.
SaaS Marketing Statistics Breakdown
- SaaS Marketing and SaaS Market Size Statistics
- SaaS Business Statistics
- SaaS Churn Statistics
- Pricing SaaS Statistics
- SaaS User Statistics
- SaaS Growth Statistics
- Company-Specific Statistics
- SaaS Usage Statistics
- Technologies and Development of SaaS
SaaS Marketing and SaaS Market Size Statistics
The biggest SaaS companies are from the US, China, and India. As companies look for a higher level of automation, the need for new and advanced software is increasing. Experts predict that the SaaS industry will continue growing in 2023 and 2024.
- Approximately 86% of US-based brands want to invest more resources in cloud-based solutions. (Fortune Business Insights)
- The SaaS market relies heavily on machine learning and artificial intelligence. The latest data indicates that the US has more than 17,000 companies, while Canada has more than 2,000. (Fortune Business Insights)
- The 17,000 US companies account for 60% of all global SaaS brands (Statista)
- In 2021, 45% of small businesses kept most of their software on the cloud. (AppDirect)
- The European SaaS market is also on the rise. According to Statista, Germany is the fastest-growing market on the continent, predicted to increase to €16.3 billion in 2025. France is the second-biggest market and might reach €11.05 billion by 2025. (Statista)
- In 2022, China’s SaaS cloud market had a value of 79.7 billion Yuan. Market experts predict it will rise to 93.5 billion in 2023 and 120.1 billion in 2023. (Statista)
- According to the latest data, more than 300 Chinese companies exceed the market value of $1 billion. The same data indicates that 42 SaaS brands have ARR (annual recurring revenue) of more than $15 million. (BVP)
- The Chinese government wishes to increase its SaaS investments to $1.6 trillion by 2025. They want to increase their presence in AI, cloud computing, and the 5G global markets. (BVP)
- Large Chinese businesses rely on self-built systems and applications (46.46%). Smaller brands usually pay for standard software tools available locally (49.07%). (iResearch China)
- Current predictions indicate that the Chinese enterprise SaaS market will reach 93.5 billion Yuan in 2023. (iResearch China)
- Optimistic predictions indicate the SaaS market size CAGR (compound annual growth rate) of 23.8%, while the pessimistic version predicts a CAGR of 13.3% CAGR. (iResearch China)
- WeChat remains the most popular social media and SaaS service in China. When writing this article, 10 million businesses and 500 million people use this SaaS platform nationwide. (BVP)
- The recent forecast predicts that the US SaaS solution market will grow to $135.1 billion in revenues in 2023. Furthermore, American companies will have the highest revenues in the world during this period. (Statista)
- The US experts predict an annual SaaS market growth of 5.49% from 2023 to 2027. (Statista)
- Enterprise software was the most popular product category in the last few years. In 2021, this type of SaaS accounted for 70% of total industry revenue. (Grand View Research)
- All data indicates that SaaS companies and the market, as a whole, will continue growing in the upcoming years. The recent forecast indicates a growth of $702.19 billion in 2030. (Allied Market Research)
- SaaS companies are interesting to investors. In 2021, the external entities participated in 308 deals, providing $12.2 billion in investments. (SVB)
- For example, Databricks raised over a billion dollars during two rounds of investments in 2021. (SVB)
- In 2022, India became the second-largest SaaS market in the world. That same year, Indian businesses reached $13 billion in annual recurring revenue ARR. (Business Today)
- The initial forecast suggests the SaaS market will reach $20 to $25 billion. (The Economic Times)
- From 2019 to 2022, Indian SaaS brands increased by 60%, going from 1,000 to 1,600. (Business Today)
- The local brands received the largest portion of their revenues (approximately 70%) from US and European companies. (Business Today)
- In 2022, the SaaS market funding increased from $4 billion to $6.5 billion. This represents an increase of 62.5%. (The Economic Times)
- Every year, India creates a few new unicorn companies. In 2022, six new brands reached this status: Amagi, DarwinBox, LeadSquared, Hasura Cloud, Uniphore, and CredAvenue. (BVP)
- The UK is one of the biggest SaaS markets in the world. Every year, local software entrepreneurs open more than 200 new companies. Right now, there are more than 2,100 SaaS businesses in the country. (Aaron Wallis)
- Experts predict UK SaaS companies will increase revenues to $16.47 billion by 2026. (Statista)
- The UK brands have more than 3 billion customers worldwide. (Statista)
- Checkout is probably the largest B2B SaaS company in the UK, followed by OneTrust and Synk. In 2022, Checkout managed to accrue 1.36 billion pounds of investments and is considered one of Europe’s most valuable SaaS unicorns.
SaaS Business Statistics
It’s hard to imagine a modern company that doesn’t use cloud software. These online tools have become integral to our business routine, allowing us to communicate with other team members, delegate tasks, and execute daily operations.
Because of that, modern brands are continuously looking to increase their investments in SaaS. The main goal is full SaaS marketing automation and achieving a significant competitive advantage.
- HR companies often consider SaaS organizations as the best places to work at. According to Glassdoor’s 2023 survey, two SaaS brands, Gainsights and Box, are the best-ranked US employers. (Glassdoor)
- Currently, there are more than 30,000 SaaS companies worldwide, with more than 5.3 billion customers. (Exploding Topics)
- Salesforce is the biggest, most influential SaaS firm in the world. It has just a bit below 10% of the global market share. (Exploding Topics)
- The largest percentage of SaaS focuses on productivity and collaboration (23%). The second largest segment is customer service (16%), followed by marketing and digital marketing (14%) and eCommerce (13%). (Vainu)
- SaaS brands use various software and platforms for their processes. Google Analytics and WordPress are the most popular programs among these companies. (Vainu)
- Having a clear SaaS marketing strategy has become crucial for large and small business entities. Approximately 99% of companies in the US utilize at least one SaaS. (BMC)
- According to a 2021 survey of 6,000 companies, 75% of brands use large SaaS suites. (Gitnux)
- Right now, 70% of apps that companies use are SaaS. Experts claim that this number will rise to 85% by 2025. (Startup Bonsai)
- According to the top software professionals, 95% of the global business workload will go through the cloud in five years. (Startup Bonsai)
- Companies that rely exclusively on SaaS use 34 different apps on average. This is 2.1 times more than the companies that combine SaaS with other types of software. (Better Cloud)
- SaaS content marketing and organic traffic are crucial for landings new customers. On average, SaaS blog posts drive 600 unique visitors to the website every month. As such, they’re crucial for your content marketing strategy. (CoBloom)
- When analyzing SaaS content marketing statistics, we must mention that 11% of SaaS brands don’t have a blog section. This is a missed opportunity, as blog posts can increase organic traffic from search engines and improve your content marketing efforts. (CoBloom)
SaaS Churn Statistics
The churn rate is a stat that shows us how many SaaS subscriptions the company lost over the year. It can also indicate how many employees a brand lost during a business year. Churn statistics help us analyze customer retention trends and why some SaaS companies are underperforming.
Although churn rate isn’t a metric exclusive to SaaS companies, it’s usually mentioned in relation to these businesses. We differentiate company-wide rates and product-related churn rates.
- An acceptable churn rate for a SaaS brand is between 3% and 8%. (Paddle)
- The acceptable product churn rate is between 32% and 50%. (Paddle)
- In a small survey that included 162 SaaS companies, the respondents reported a median revenue churn of 13.2% and a logo churn of 21%. (For Entrepreneurs)
- Churn stats can vary significantly depending on whether a company focuses on B2B or B2C clients. B2B marketers can expect a 4.91% churn rate, while B2C companies experience 6.77%. It’s worth mentioning that the data refers to different types of subscription platforms. (Recurly)
- The voluntary churn rate occurs when a client voluntarily stops paying. SaaS voluntary churn rate is 3.95%. (Recurly)
- The involuntary churn rate is a product of payment issues, and it is 1.38% for the SaaS industry. (Recurly)
- Consumer Goods & Retail companies have the highest median churn rate at 7.55%. The second worst is the education platform industry at 7.22%, followed by Business & Professional Services at 6.59%. (Recurly)
- Older companies have lower churn rates. A SaaS business that exists for less than a year can expect a churn rate of 11.16%. Brands that have operated for more than ten years have a churn of 2.32%. (ProfitWell)
- Churn is inversely higher or lower depending on ARPU or average revenue per user. Companies that have ARPU above $500 have 2.78% churn. Brands with less than $10 ARPU have 8.71% churn. (ProfitWell)
Pricing SaaS Statistics
B2B SaaS marketing and pricing differ from standard brick-and-mortar companies. We’ve already talked about how important it is to retain existing customers, that is, to have a low churn rate. However, your pricing policies are also important to your overall marketing strategy.
Almost every SaaS tool offers several subscription plans to its users. If you’re looking for a more expensive plan, you’d have to ask company representatives for a quote.
Companies use a SaaS marketing mix to find optimal prices for their products. Prices are usually more important for B2C customer acquisition. On the other hand, businesses are most interested in product functionality and how SaaS application can help their bottom line.
- Companies use various metrics to calculate their prices. The most common one is the number of seats (39%), followed by usage (25%), the number of employees using software (9%), and modules (9%). (For Entrepreneurs)
- Approximately 55% of SaaS brands in an expansion state don’t have an employee responsible for pricing strategy. Only 9% of companies have a fully-dedicated pricing specialist. (Open View Partners)
- The value-based approach is the most popular pricing methodology used by 40% of brands. The second is the competitors-based approach at 26%, the best judgment approach at 25%, and the cost-plus approach at 9%. (Open View Partners)
- Annual plans are a common pricing strategy that 54% of brands use. However, most businesses are reluctant to publicize their prices. Only 39% of B2B SaaS companies disclose pricing plans on their website. (Invesp)
- In 73% of companies, SEO is responsible for creating a pricing strategy. (Open View Partners)
- One-month trial period is the most common free trial strategy employed by 41% of SaaS. The next, most-popular approach is a 14-day trial that 18% of companies use. (Invesp)
- Changing a pricing policy is often beneficial for SaaS companies. Approximately 98% of brands improve their operations by tweaking their approach. (Invesp)
- Although price is an important consideration, 64% of responders claim they would give an advantage to software with stellar user experience. (Abdalslam)
- Pricing optimization has become a common buzzword within the industry. According to an older survey from 2015, companies that revise pricing yearly improve their bottom line by 3.23%. Companies that optimize pricing plans all the time experience increase of 11.09%. (Price Intelligently)
SaaS User Statistics
While a SaaS organization can make a difference with proper pricing, most users rate a SaaS product according to its usefulness. Increasing user engagement and having solid policies are also good methods for closing a potential customer.
B2B and B2C SaaS clients have completely different requirements forcing you to change your SaaS strategy accordingly. While B2C purchases are sometimes impulsive, B2B clients are much more cautious when choosing new software.
When trying to entice clients, brands use different B2C and B2B marketing approaches. SaaS companies rely on Google Ads, video content and video marketing, SEO and blog posts, and other strategies.
- Software engineers are the most common commercial users of a SaaS cloud service at 20%. Architects and technical leads are the second at 11%. (Startup Bonsai)
- According to data, 70% of people who try the free version become paying customers if a sales rep contacts them by the end of the trial. (Totango)
- Approximately 50% of existing customers use SaaS once a month. Around 19% of clients use it less than once a week, 14% of people use it weekly, and 17% daily. (Totango)
- If a person uses the free trial version for at least three concurrent days, there are four times more likely to become paying clients. (Totango)
- The monthly retention rate for mobile SaaS app users is 41.5%. (99 Firms)
- Companies that allow sign-ups without leaving credit card data have a two times high conversion rate. (Invesp)
- Approximately 60% of all users in the US are shadow admins. (Varonis)
- Using SaaS on a company-wide level can lead to potential security breaches. Data reveals that 15% of users transfer sensitive business data to their clouds. Furthermore, 16% of the workforce can perform privileged tasks, out of which 20% can use sensitive company data. (Varonis)
- About 25% of clients will stop using SaaS after a single ransomware accident. Furthermore, 59% of consumers would completely avoid doing business with companies that suffered cyberattacks in the last year (Cyber Security Ventures)
SaaS Growth Statistics
There are numerous reasons why the SaaS industry has experienced such enormous growth in the last several years. Companies that use these tools gain enormous advantages in their local market. By automating their daily processes, SaaS clients can increase efficiency across the board, simplify operations, and gain other major benefits.
The COVID epidemic also played its part in hastening adoption. As companies were forced to close their offices, they had to use online software to continue operating. This “trial period” made businesses realize they’re much more efficient with automated cloud programs.
All the forecasts indicate that the market will keep on growing in the following years. In particular, we can expect growth in non-US markets such as India, Brazil, and China. Like in other industries, brands with a good inbound SaaS marketing strategy will likely achieve faster growth.
- Market insights claim that the global cloud computing market will grow from $545.8 billion to 1240.9 billion from 2022 to 2027. (Report Linker)
- We can expect that the SaaS market will reach a 17.6% compound annual growth rate (CAGR). (Report Linker)
- The COVID crisis propagated the use of SaaS, causing 77% of small businesses to become more reliant on this technology. However, not everyone was happy with their choice of software. Out of all the respondents, 52% weren’t satisfied with their SaaS purchase. (AppDirect)
- One of the reasons why small business owners were initially satisfied with the use of SaaS is because 84$ of companies experienced some issues. (AppDirect)
- The 100 SaaS firms in the US with revenues exceeding $100 million have median growth of 22%. (McKinsey & Company)
- Many companies use the “Rule of 40” method to properly assess their growth. According to it, the sum of the company’s growth rate and cash flow rate should equal or excel at 40%. Unfortunately, only 16% of US companies meet this mark. (McKinsey & Company)
- Average company spending on SaaS per employee will grow to $72.94 in 2023. (Statista)
- It isn’t uncommon for SaaS products to have growth exceeding 100%. In 2023, experts predict that Linktree (2050% growth), Adalo (9200% growth), and ClickUp (3850% growth) will be some of the fastest-growing SaaS brands in the world. (Exploding Topics)
- SaaS professionals analyzed 200 companies that operated from 2011 to 2021. They discovered that only 1.6% of the brands managed to sustain a revenue growth of 30%. (McKinsey & Company)
The stats become even more interesting when we look at individual companies. Some SaaS brands have become so powerful and are currently carrying their domestic economies. And according to everything we’ve seen, the trend will become more noticeable in the upcoming years.
The industry’s impact has increased significantly since its early days. In just ten years, some of the major SaaS companies increased their market cap by 50 to 100 times. Aside from helping their respective domestic budgets through paid taxes, these brands have become important for the local economy employing hundreds and even thousands of people.
- In 2008, the top 5 US companies had a total market cap of $13.89 billion. In 2020, this number rose to $616.1 billion, which is a 44-time increase. (Startup Bonsai)
- As previously mentioned, Salesforce is the largest SaaS company in the US and the world. The latest 2022 data shows us that this company has 73,000 employees on its payroll. They increased their workforce by almost 30% since 2021. (Exploding Topics)
- There are three SaaS companies in the world with a market cap exceeding trillion dollars: Apple ($2.86 trillion), Microsoft ($2.31 trillion), and Google ($1.86 trillion). (Eqvista)
- Netflix achieved great operational success in 2022. The company made $7.87 billion in first-quarter revenues. (Growth Marketing Pro)
- At the moment of writing this article, HubSpot Inc. has the highest stock price out of all SaaS at $399.12. (Market Watch)
- Accel is one of the largest SaaS investors in the world. They initiated or led 70% of portfolio company investments. Some of their biggest brands are Slack, Dropbox, Spotify, and SquareSpace. (Accel)
- Aside from providing services, SaaS brands are actively acquiring other tech brands. Microsoft is on the verge of making the biggest acquisition by a SaaS company, as it’s looking to buy Activision Blizzard for $68.7 billion. (Polygon)
SaaS Usage Statistics
Unlike the user statistics section, which shows us how individuals use SaaS products, usage statistics depict company-wide usage. The information shows us how the sentiment changed over the years and how brands became increasingly dependent on cloud technology.
In just a few years, most companies increased their budgets by ten times or more. Larger corporations now utilize more than 100 SaaS every day, as the programs become an inseparable part of their daily routines.
Free and freemium products such as Google, Zoom, and Slack have become commonplace among businesses of all sizes. However, brands also don’t mind investing in expensive platforms such as HubSpot and Salesforce.
- Companies that are heavily reliant on SaaS automate 45% of their SaaS processes. The number will likely increase to 80% in the next three years. (BetterCloud)
- In 2021, an average company used 110 SaaS apps. This was a major increase from 2020, when they used 80. By comparison, an average business used 8 SaaS in 2015. (BetterCloud)
- SaaS products are vital for remote workplaces. Approximately 70% of SaaS-powered companies use remote work. In comparison, 44% of traditional companies have a remote workforce. (BetterCloud)
- Contract values for the software we classify “as-a-service” has increased five times in the last six years. (ISG-One)
- Companies are increasingly relying on the cloud for data storage. A study from 2020 indicates that 200 zettabytes of global data will be stored in the cloud by 2025. (Cyber Security Ventures)
- VMware vSphere is the most popular cloud service at 36%. (Flexera)
- Optimizing cloud usage has become an important part of digital management. About 61% of brands are looking to find better SaaS solutions and cut their costs, and 59% wish to transfer more workload to the cloud. (Flexera)
- Terraform is the most popular configuration software globally, with 36% of paying customers. Ansible is second at 31%, and Chef is third at 29%. (Flexera)
- Around 33% of employees working in Fortune 100 companies use SaaS that their IT department hasn’t approved. (Startup Bonsai)
Technologies and Development of SaaS
SaaS companies are at the forefront of tech use. These brands are continuously innovating new systems, creating platforms that can assist businesses of different sizes. They also utilize the best software that would allow quick and efficient product development.
- As expected, the majority of SaaS experts hail from the US, making up 18.33% of all global engineers. The second most-represented group is Indians, at 12.62%. Germany and the UK are in third and fourth place with 6.75% and 5.37%, respectively. (StackOverflow)
- Offboarding is one of the trickiest processes that SaaS companies have to deal with. The process takes 7 hours on average, and they have most issues with their IT engineers. (Better Cloud)
- Most SaaS experts perceive remote work as something that can increase efficiency and, thus, the development process. According to data from 2021, project management benefits the most from remote work, having a 54.61% improvement. Operations also receive a significant boost at 49.82%, followed by product management at 46.86%. (TechStrong Research)
- Daily-stand-up meetings lead to 55.64% increased work efficiency, followed by cross-functional teams and using emails instead of traditional meetings (46.24%). (TechStrong Research)
- Most SaaS developers have enormous experience. About 30% of these employees have worked in the industry for 5 to 9 years, while 18.9% have 10 to 14 years of experience. (TechStrong Research)
- A high percentage of IT experts (64.31%) have a permanent position in the company. An interesting thing about SaaS companies is that they consist of 14.14% percent of students. (TechStrong Research)
- Most companies use AWS for product deployment (54.22%). Google Cloud Platform is the second most popular platform at 31.05%, closely followed by Microsoft Azure at 30.77%. (TechStrong Research)
What is a good monthly growth rate for SaaS?
On average, most SaaS brands have annual revenue growth of 15% to 45%. This usually varies based on the company’s development stage. According to the latest data, US companies that have more than $100 market capitalization have an average growth of 22%.
What are SaaS marketing metrics?
SaaS marketing metrics are statistical categories that benchmark a business against competitors, industry average, and itself. Metrics show managers how a company is performing during different stages of development. The most important statistics are churn rate, customer acquisition cost, and customer lifetime value.
How much does SaaS spend on marketing?
According to available data, most companies invest 30% to 40% of their annual recurring revenue in marketing activities.
What is a good annual churn rate SaaS?
The churn rate shows us how many clients stopped using the company’s software. A good churn rate is somewhere between 3% and 8%.