100+ SaaS Statistics and Trends for 2024

Updated on December 20 2023
image

The SaaS industry is one of the fastest-growing industries in the world. According to Globenewswire report, the global SaaS market was valued at $143.77 billion in 2021 and it is expected to reach $720.44 billion by 2026.

As the industry grows, so too does the competition. SaaS companies are now using a variety of marketing strategies to acquire and retain customers. Our team went deep into 35+ reports published by authority sites (sources cited) in SaaS domain and came up with this compilation of 100+ SaaS statistics that spreads across statistics on SaaS trends, customer behavior, and various marketing strategies used by SaaS brands.

These SaaS statistics will give you a better understanding of the SaaS industry and how to market your SaaS product or service effectively in 2024.

Top 10 SaaS Statistics for 2024

Top 10 SaaS Statistics - Infographic
Top 10 SaaS Statistics – Infographic

SaaS Statistics for Pricing

  • SaaS company marketing budgets typically average around 7-8% of revenue (Source: Gitnux).
  • User-based pricing is still utilized by 50% of SaaS organizations, with the most common free trial period being 1 month (Source: Cobloom).
  • About 40% of SaaS companies take a value-based approach to pricing, while 30% charge based on usage (Source: OpenView Venture Partners).
  • The optimal number of paid packages is typically three (low, medium, and high) to prevent customer confusion (Source: 2checkout).

SaaS Statistics in Customer Acquisition and Churn Rate

  • The median SaaS business loses about 10% of its revenue to churn annually, translating to approximately 0.83% revenue churn per month (Source: Insivia).
  • The median cost to acquire $1 of ARR for a new customer was $1.32, potentially dropping to $0.71 with upselling strategies (Source: KBCM Technology Group).
  • Startups typically allocate about 92% of their first average contract value to customer acquisition, resulting in an 11-month payback period on the CAC (Source: Tom Tunguz).
  • The median churn rate for SaaS organizations was 13.2% in 2018 (Source: KBCM Technology Group).
  • An acceptable annual churn rate typically ranged between 5% and 7% when measuring revenue or customers (Source: Sixteen Ventures).
  • 70% of active free trial users are likely to purchase paid services after reaching out (Source: Invespcro).
  • Approximately 16% of SaaS marketing budgets are allocated to event marketing (Source: Gitnux).

SaaS Statistics for Market Growth and Revenue:

  • Between 2019 and 2021, the global SaaS market was expected to reach $60.36 billion, with a 9% CAGR over four years (Source: Technavio).
  • Since 2010, the money spent per company on SaaS apps has increased annually (Source: Blissfully).
  • The forecasted compound annual growth rate of the SaaS market was 18% (Source: MarketsandMarkets).
  • In 2018, SaaS organizations generated an estimated $72.2 billion in revenue (Source: Gartner).
  • Global SaaS market revenues were projected to reach $113.1 billion by 2021 (Source: Gartner).
  • Microsoft held 18% of the SaaS market share, followed by Salesforce with 11.5% and Adobe with 6.7% (Source: Synergy Research Group).
  • North America and the Asia Pacific SaaS markets were expected to exhibit the highest growth rates (Source: MarketsandMarkets).
  • In 2018, 17 new public SaaS vendors raised $5.1 billion in the most successful SaaS IPO year (Source: Battery).
  • Germany is expected to experience the largest increase in SaaS market growth among major markets by 2025 (Source: Statista).
  • The global SaaS market is estimated to reach USD 223.7 billion by 2022 and over USD 571.9 billion by 2027, with a compound annual growth rate (CAGR) of 20.6% during 2022-2027 (Source: BCC Research).
  • Research reveals that 44% of B2B SaaS companies prefer sales-negotiated pricing, followed by fixed pricing at 34%, and variable pricing at 24% (Source: SaaSoptics).
  • Usage-based pricing is gaining traction, with 45% of companies adopting it, which is double the rate from four years ago, and it is projected to reach 56% in 2023 (Source: Openview).

Also read: How to monetize your SaaS App?

Content Marketing Statistics for SaaS

  • Case studies prove to be one of the most effective content marketing strategies for boosting sales (Source: Uplift Content).
  • Marketers find competitor analysis to be one of the most helpful content marketing tactics (Source: SEMrush).
  • Approximately 9 out of 10 SaaS businesses incorporate blog posts into their online marketing strategy (Source: SaaSPartners.io).
  • Implementing a content marketing strategy leads to a 30% higher growth rate compared to those not utilizing content marketing (Source: ProfitWell).
  • 57% of SaaS companies view content creation as a key marketing strategy (Source: Gitnux).
  • 74% of B2B marketers believe that delivering value is the top factor in content marketing success (Source: Content Marketing Institute).
  • 80% of B2B technology marketers consider writing the most crucial content marketing skill, followed by digital media skills (77%) and data analysis skills (65%) (Source: SaaSPartners.io).
  • 57% of the most successful B2B tech companies outsource their SaaS content marketing activities (Source: Content Marketing Institute).
  • 78% of Chief Marketing Officers (CMOs) see custom content as the future of marketing (Source: DemandMetric).
  • Online users spend 20% of their online time consuming content (Source: DemandMetric).
  • 78% of users perceive a relationship between themselves and a company using custom content (Source: DemandMetric).
  • SaaS buyers spend 27% of their time during the buying process conducting independent online research (Source: Gartner).
  • Over 30% of SaaS subscribers cancel their subscriptions within the first three months (Source: Zipdo).
  • SaaS companies allocate between $342,000 and $1,090,000 per year to content marketing (Source: 0101Marketing).
  • Content marketing costs SaaS businesses 62% less than traditional marketing (Source: DemandMetric).
  • Content marketing produces 3X better lead generation results than traditional marketing (Source: DemandMetric).
  • The average SaaS startup spends about 75% of its revenue on sales and marketing in the first three years (Source: Zipdo).
  • SaaS businesses using content marketing report lead generation growth of up to 400% (Source: Gitnux).
  • 98% of SaaS companies maintain blogs, and 42% of marketers indicate that updating existing content enhances their content marketing value (Source: Insivia).
  • B2B brands with regularly updated blogs generate 67% more leads compared to those that don’t (Source: DemandMetric).
  • About 90% of SaaS companies incorporate blogs into their online strategy (Source: MailUp).
  • SaaS landing pages with strong calls to action (CTAs) witnessed an 80% increase in conversion rates, with sign-up forms experiencing a 34% boost (Source: Kalungi).
  • The most successful blog posts in the SaaS sector average under 3,000 words (Source: Content Marketing Institute).
  • 41.5% of SaaS marketing professionals find that infographics and other original visual graphics generate the most engagement (Source: Venngage).
  • People following directions that combine text with illustrations are 323% more successful in following those directions than when illustrations are absent (Source: LinkedIn).

Social Media Marketing Statistics for SaaS

  • Social media marketing efforts increase website traffic for 75% of marketers (Source: Review42).
  • 18% of top SaaS companies host their own podcasts (Source: DevSquad).
  • YouTube is the leading driver of social media traffic for 98% of prominent SaaS companies, followed by Facebook (96%), LinkedIn (78%), and Twitter (72%) (Source: Mike Sonders).
  • 86% of consumers looking to buy IT products, including SaaS subscriptions, use social media to aid their decision-making (Source: SocialPilot).
  • 76% of Internet users make a purchase after seeing a product or service on social media (Source: Retail TouchPoints).

Video Marketing Statistics for SaaS

  • A remarkable 88% of people claim to have made a purchase decision based on brand videos (Source: Wyzowl).
  • 91% of businesses attribute increased traffic to the use of video as a marketing tool (Source: Wyzowl).
  • 57% of video marketers created screen recorded videos in 2022 (Source: Wyzowl).
  • Over 70% of sales professionals believe custom-recorded videos generate more opens, clicks, and responses than text-based emails (Source: Business Wire).
  • 51% of B2B SaaS marketing professionals consider webinars and webcasts their most successful form of video content, followed by interviews with industry experts at 36% (Source: Content Marketing Institute).
  • 91% of SaaS apps achieve success with a webinar format involving at least two speakers (Source: Demio).

Also read: Best TikTok Editing Apps

Email Marketing Statistics for SaaS

  • SaaS companies achieve an average 66% open rate for their targeted email marketing campaigns (Source: Source: Gitnux).
  • The most common types of emails sent by SaaS and tech companies include onboarding emails, feature announcements, newsletters, surveys, and check-ins (Source: Sprout Social).
  • 37% of brands are increasing their email budgets (Source: Hubspot).

Also read: How to Create a Newsletter?

SEO and Organic Search Statistics for SaaS

  • Ranking #1 in Google’s organic search results yields an average CTR of 27.6% (Source: Backlinko).
  • 53.3% of total website traffic comes from organic search (Source: G2).
  • Backlinks rank among the top three ranking factors (Source: UserGuiding).
  • 63% of Google searches originate from mobile devices, highlighting the need for mobile optimization (Source: Oberlo).

Also read: Evolution of SaaS SEO (Case Study)

B2B Buying Behavior Statistics. for SaaS

  • B2B buyers spend 27% of their buying process time researching independently online (Source: Gartner).

SaaS Adoption Statistics

  • 38% of companies reported relying almost entirely on SaaS technologies, resulting in higher employee engagement and user success (Source: BetterCloud).
  • In 2017, the number of SaaS apps used by companies increased by 33% from the previous year, with 73% of organizations aiming to have 80% or more of their apps as SaaS by 2020 (Source: BetterCloud).
  • Salesforce, one of the largest SaaS organizations, was ranked as the number 1 best company to work for in the United States (Source: Fortune).
  • Companies entirely reliant on SaaS use an average of 34 apps, 2.1 times more than the typical workplace (Source: BetterCloud).
  • Challenges for the SaaS sector include a shortage of skilled workers and cybersecurity threats (Source: MarketsandMarkets).
  • A lack of transparency within your SaaS organization results in SaaS app licenses going underutilized or remaining unused. This can result in nearly one-third of your SaaS resources being squandered, potentially translating to substantial financial losses, ranging from hundreds of dollars to millions, depending on the scale of your company (Source: BetterCloud).
  • Businesses that use an average of 212 SaaS apps are 93% reliant on SaaS software, whereas workspaces in transition using 79 average SaaS apps are 55% SaaS-based, and traditional workspaces using 39 average SaaS tools are 8% SaaS-focused (Source: Grand View Research).
  • The enterprise software segment dominates the SaaS market, accounting for 70% of its revenue, driven by the increasing trend of cloud deployment among small and medium businesses (Source: Grand View Research).

Customer Engagement Statistics for SaaS

  • 80% of marketers consider customer experience a key competitive differentiator (Source: Salesforce).

Optimization and Resource Utilization Statistics for SaaS

  • More than 90% of SaaS companies employ live chat to increase sales, with 89% using it to enhance customer service (Source: Gitnux).
  • The best cloud companies can turn a $1 investment into $18 in just one year, leading to cloud-model businesses being valued at 10-20x their annual revenue in recent markets (Source: BVP).

Other SaaS Statistics

  • In 2023, mobile devices accounted for 58.33% of global website traffic (Source: Statista).
  • 67% of B2B marketers incorporate infographics into their strategies (Source: Content Marketing Institute).
  • 31% of marketers use video content to enhance SEO (Source: Hubspot).
  • Short-form videos are expected to see the most growth in 2023 (Source: Hubspot).
  • Most SaaS organizations say that offboarding is a tedious task that can take up to 7 hours/per user. The hardest department to offboard is engineering, followed by operations, sales, and finance. (Source: BetterCloud)
  • 36.7% of SaaS marketing professionals consider the biggest challenge with visual content to be producing engaging visuals consistently (Source: SiegeMedia).

SaaS Industry Trends

  • A significant 93.5% of SaaS companies offer educational webinars (Source: Demio).
  • A staggering 99% of companies use at least one SaaS solution to run their businesses (Source: ThriveMyWay).
  • Free trials that don’t require users to share their credit card information double the likelihood of customers purchasing SaaS tools (Source: ThriveMyWay).
  • 64% of large organizations express concerns that SaaS adoption is outpacing cybersecurity measures (Source: Business Wire).
  • The average number of SaaS apps used by various establishments doubled from 8 to 16 between 2015 and 2017 (Source: BetterCloud).
  • By 2025, about 20% of organizations are anticipated to discontinue investments in on-premises CRM deployments to accelerate their shift to SaaS CRM (Source: Gitnux).
  • The US SaaS industry is projected to grow by over 2x by 2025 (Source: Reply).
  • Approximately 91% of SaaS professionals emphasize the importance of financial alignment with marketing, SaaS, and customer success for growth (Source: Revops Squared).

Conclusion

These statistics shows a pivotal role that marketing plays to ensure the success and sustainability of SaaS enterprises in a digital and data-driven world. The numbers underscores the fundamental importance of crafting an effective marketing strategy as they demonstrate the direct correlation between well-executed marketing efforts and the growth and success of SaaS businesses.

Take advantage of these SaaS statistics to figure out what works best for your SaaS brand and take data-driven decisions.

About Appscribed

Appscribed is a comprehensive resource for SaaS tools, providing in-depth reviews, insightful comparisons, and feature analysis. It serves as a knowledge hub, offering access to the latest industry blogs and news, thereby empowering businesses to make informed decisions in their digital transformation journey.

Related Articles

image
Updated on January 11 2024
AI Trend in 2024 – Predictions fro ...
image
Updated on November 11 2023
The Case of AI vs AI – How an AI N ...
image