The SaaS industry has experienced remarkable growth and transformation, driven by the need for digital innovation and the adoption of remote work.
Offering flexibility and affordability through subscription-based models hosted on remote cloud networks, SaaS solutions have become integral to certain industries.
In 2022, despite global economic challenges, spending on public cloud services, including SaaS, is projected to reach a staggering $482 billion, solidifying its dominant position in the cloud services landscape.
The widespread adoption of SaaS is evident, with companies utilizing an average of 80 IT-sanctioned SaaS apps, accounting for around 70% of their current business applications.
The SaaS market is projected to grow exponentially, with estimates reaching $138 billion by 2022.
With this massive growth, this article highlights statistics and trends into how SaaS marketing teams are staying ahead of the curve and thriving across all channels.
Here are 275 of the latest SaaS marketing stats you should know.
SaaS Marketing Statistics You Should Know
1. The SaaS industry had a 5.9% churn rate in 2022, while 85% of customers are willing to pay more for a high-quality SaaS experience. 
2. By 2023, 40% of businesses will implement anywhere operations. 
3. 70% of CIOs are interested in cloud-based SaaS technologies. 
4. B2B purchasing groups involve 6-10 decision-makers, and the buying journey is non-linear. 
5. Millennials rely on analysts, vendor meetings, and websites, while baby boomers rely more on analysts, colleagues, and vendor meetings. 
6. Not asking for credit card info during free trials attracts more paying customers. 
7. Active trial users contacted by sales representatives are 70% more likely to convert. 
9. Over 90% of SaaS companies use live chat to boost sales and improve customer service. 
10. SaaS marketing budgets typically range from 7-8% of revenue. 
11. By 2023, more than 75% of organizations are expected to adopt at least one SaaS platform. 
12. In 2020, 60% of CRM software was SaaS-based. 
13. Event marketing receives about 16% of SaaS marketing budgets. 
14. By 2025, 20% of organizations plan to shift from on-premises CRM to SaaS CRM. 
15. Targeted email marketing campaigns achieve an average open rate of 66% for SaaS companies. 
16. Content marketing drives lead generation growth of up to 400% for SaaS businesses. 
17. The B2B SaaS market is projected to reach $133 billion by 2023. 
19. Improving customer onboarding is crucial, and it can be accomplished through clear tutorials, seamless integration, responsive support, expectation management, user feedback, personalized workflows, and targeted in-app messages. 
20. The SaaS industry had a market value of $186.6 billion in 2022 and an 18% annual growth rate. 
21. By 2023, it is estimated that 99% of companies will use at least one SaaS solution. 
22. The United States dominates the SaaS sector, hosting 17,000 out of 30,000 SaaS companies worldwide. 
23. The U.S. market is valued at $108.4 billion and projected to reach $225 billion by 2025. 
24. On average, organizations use 110 SaaS applications. 
25. SaaS companies prioritize customer acquisition, spending 92% of their first-year revenue. 
26. SaaS adoption is driven by its ability to increase productivity and lower costs. 
27. The SaaS industry is experiencing significant global growth, with the United States leading the way, hosting 56.67% of all SaaS companies. 
28. The largest SaaS company in the US stock exchange is Salesforce.com Inc., followed by Adobe Inc. 
29. China’s SaaS market has over 42 companies with revenues exceeding $15 million ARR, while the Indian SaaS industry is projected to reach $100 billion in revenues by 2026. 
30. The European SaaS market is expected to double in size by 2025, with Germany leading the growth. 
31. In Africa, South Africa’s SaaS market is projected to grow by 9.27% this year. 
32. Businesses perceive SaaS as important, with 73% considering it essential for their success. 
33. CIOs favor cloud-based SaaS for its agility and scalability, and 28% of business leaders view their tech stacks as a strategic advantage. 
34. Valuation multiples have dropped in recent months, and AI is driving changes in the industry. 
35. SaaS usage has doubled, with organizations now using an average of 16 apps. 
36. The global market is projected to reach $380 million by 2021, with a 9% annual growth rate. 
37. SaaS revenue is estimated to be $113.1 billion by 2021, led by Microsoft. 
38. North America has a mature market, while Asia Pacific shows high growth. 
39. Case studies are effective for 47% of SaaS companies. 
40. The median cost to acquire customers is $1.32 for $1 of ARR. 
41. Startups spend 92% of their first contract value on sales. 
42. The median churn rate at SaaS companies is 13.2%. 
43. SaaS adoption improves employee engagement and success rates. 
44. Salesforce is ranked as the best company to work for. 
45. 70% of free trial users convert to paid services. 
46. On average, SaaS companies use 34 apps. 
47. 40% use value-based pricing, and 30% charge based on usage. 
48. The SaaS market is valued at over $195 billion in 2023, with the US leading in SaaS companies. 
49. A significant number of organizations have already implemented SaaS, and more plan to do so in the future. 
50. Almost all companies utilize at least one SaaS application. 
51. The projected SaaS market value is $195.8 billion by 2023, with businesses investing in multiple applications. 
52. Positive outcomes reported include increased productivity, collaboration, and customer satisfaction. 
53. SaaS applications vary in price, ranging from $5 to $500 per user per month. 
54. SaaS companies have raised over £2 billion in venture capital funding since 2015. 
55. The global SaaS market comprises over 30,000 companies, with the US and UK as major contributors. 
56. Salesforce, Adobe, and Microsoft hold 60% of the market capitalization. 
57. SaaS investments cover various segments, with enterprise software being a significant portion. 
58. Revenues are expected to reach $250 billion by 2024, with cloud computing accounting for a significant portion of IT spending. 
59. SaaS expenditures vary by country, with the US and UK leading the way. 
60. Germany and Italy exhibit notable increases in SaaS adoption. 
61. Despite their popularity, SaaS services present challenges, including data security, integration, control over IT processes, and data access concerns. 
62. Selecting the right SaaS product, lacking internal expertise, and estimating costs accurately are also common challenges. 
63. Customer retention and business health are indicated by an average churn rate of 15.11% for SaaS companies. 
64. The SaaS market is projected to grow at a CAGR of 12% from 2021 to 2026. 
65. The majority of organizations plan to have nearly all their apps as SaaS by 2021. 
67. SaaS application expenditures were approximately $343,000 per business in 2018. 
68. Cloud platform migration is expected to reach 75% of databases by 2022. 
69. The global SaaS market reached around $104.6 billion in 2020 and is predicted to constitute 17% of the total enterprise applications market by 2021. 
70-. Cloud data centers will process 94% of workloads by the end of 2021. 
71. B2B spending on SaaS products is projected to surpass $100 billion annually by 2026. 
72. A mix of on-premise and SaaS solutions is used by 38% of companies. 
73. CRM holds the largest share in the SaaS application segment at 24%. 
74. North America dominates the global SaaS market, and security breaches involving SaaS applications affected around 27% of companies in 2020. 
75. The US leads the market with the highest number of SaaS companies, followed by the UK, Canada, Germany, France, and India. 
76. The US market is projected to grow by 2x by 2025, reaching a value of $225 billion. 
77. The overall SaaS market has seen substantial growth, increasing from $31.5 billion in 2015 to approximately $171.9 billion in 2022. 
78. Companies with more than 1000 employees utilize over 150 SaaS applications, while smaller organizations require fewer applications. 
79. The cloud application market is also on the rise, with a projected value of $168.6 billion by 2024. 
80. SaaS technology is considered essential for business success, with 73% of respondents recognizing its significance. 
81. Data security and encryption remain top concerns for SaaS users. 
82. The global SaaS market is projected to reach a value of $240.61 billion in 2022, with a growing preference for cloud computing companies. 
83. Almost all businesses (99%) use at least one SaaS company, with the top industries being information technology, analytics, and financial services. 
84. Search volume for “SaaS” has increased by 100% in the last five years, indicating growing popularity. 
85. Microsoft is the largest SaaS company, with a market capitalization of $1.95 trillion. 
86. Annual subscriptions are preferred over monthly ones, as businesses recognize the value and productivity offered by SaaS. 
87. Communication service providers can save an average of 25% by switching to SaaS. 
88. The customer churn rate benchmark for SaaS businesses in 2022 is 5.9%, emphasizing the importance of retaining customers. 
89. A high-quality customer experience is valued by 85% of customers, who are willing to pay more for a SaaS product that meets their expectations. 
90. SaaS companies allocate an average of 18% of revenue to sales, 9% to marketing, and 10% to customer support. 
91. Mobile compatibility is crucial, as 72.6% of internet users will access the web solely through their mobile phones by 2025. 
92. Chief Information Officers prioritize agility and scalability when using SaaS solutions. 
SaaS Adoption & Workforce Size Statistics
93. The SaaS market is growing by 18% annually. (BMC)
94. By the end of 2021, 99% of organizations will use at least one SaaS solution. (BMC)
95. 78% of small businesses have invested in SaaS. (BMC)
96. SaaS adoption in the healthcare industry grows at 20% annually. (BMC)
97. 70% of CIOs see agility and scalability as top reasons for using SaaS. (BMC)
SaaS Acquisition & IPO Statistics
98. Docsend was acquired by Dropbox for $165 million. (BMC)
99. Chorus.ai was acquired by ZoomInfo for $575 million. (BMC)
100. Couchbase debuted with a valuation of over $1 billion. (BMC)
101. SentinelOne’s valuation reached $10 billion at its IPO. (BMC)
102. Confluent was valued at $9 billion at its IPO. (BMC)
103. Sprinklr was valued at $4 billion at its IPO. (BMC)
34 SaaS Content Marketing Statistics To Know
104. Nearly nine out of 10 large SaaS businesses maintain blog posts as part of their online marketing strategy. (Source: madx.digital)
105. Nearly 36% use their blog posts as a way to educate readers about various topics within the industry. (Source: madx.digital)
106. According to a study by Venngage, 41.5% of marketers believe that infographics and other original graphics perform the best when it comes to engagement. (Source: madx.digital)
107. 25.7% said charts and data visualizations are most effective. (Source: madx.digital)
108. At least 18% of the top SaaS apps businesses use podcasts as a marketing tool. (Source: madx.digital)
109. Almost half of all SaaS blogs contain a call-to-action urging readers to subscribe. (Source: madx.digital)
110. Creating content is a challenge for 62% of marketers in the B2B tech sector. (Source: madx.digital)
111. B2B tech companies dedicate an average of 15% of their annual budget to marketing each year. (Source: saaspartners.io)
112. In a survey, 80% of B2B tech marketers expressed that writing skills are important. (Source: saaspartners.io)
113. 78% of B2B tech marketers believe content marketing skills are important. (Source: saaspartners.io)
114. 77% of B2B tech marketers believe digital media skills are important. (Source: saaspartners.io)
115. 77% of B2B tech marketers believe data analysis skills are important. (Source: saaspartners.io)
116. 65% of B2B tech marketers believe email marketing skills are important. (Source: saaspartners.io)
117. SaaS companies create a quarter of all webinars. (Source: saaspartners.io)
118. B2B believes that webinars generate almost close to three-fourths of a sales lead. (Source: saaspartners.io)
119. Targeted email marketing campaigns achieve an average open rate of 66% for SaaS companies. (Source: taylorscherseo.com)
119. Content marketing drives lead generation growth of up to 400% for SaaS businesses. (Source: taylorscherseo.com)
120. Case studies are effective for 47% of SaaS companies. (Source: taylorscherseo.com)
121. SaaS companies allocate an average of 18% of revenue to sales, 9% to marketing, and 10% to customer support. (Source: taylorscherseo.com)
122. 47% of SaaS companies say that case studies are very effective at boosting sales. (Source: bestwriting.com)
123. The median startup spends approximately 92% of its first average contract value on the sale, which translates into a payback period of 11 months on the CAC (customer acquisition cost). (Source: bestwriting.com)
124. 85% of large SaaS businesses have a blog. (Source: bigleap.com)
125. 36% of SaaS companies use their blog to share educational content. (Source: bigleap.com)
126. Most B2B articles written in the last 12 months were 3,000 words or less. (Source: bigleap.com)
127. 93.5% of SaaS organizations offer educational webinars. (Source: bigleap.com)
128. 87.1% of SaaS organizations offer gated webinars, while 37.1% offer ungated webinars. (Source: bigleap.com)
129. In terms of webinar formats, 91.02% of SaaS businesses record conversations that include more than two speakers. (Source: bigleap.com)
130. The most common marketing emails SaaS companies send are welcome emails, onboarding emails, feature announcements, new content (blog posts, videos, etc.), newsletters, surveys, and check-ins. (Source: bigleap.com)
131. 77% of B2B businesses use email newsletters in their content strategy. (Source: bigleap.com)
132. 79% of B2B professionals believe email is their most successful marketing channel for content distribution. (Source: bigleap.com)
133. The average email open rate for software and internet industries is 20%. The average click-through rate (CTR) is 7.18%. (Source: bigleap.com)
134. YouTube is the leading contributor of social traffic for 98% of the top 50 SaaS companies, followed by Facebook (96%), LinkedIn (78%), and Twitter (72%). (Source: bigleap.com)
135. 71% of consumers who’ve had a positive social media experience with a brand are likely to recommend that brand to friends and family. (Source: bigleap.com)
136. 86% of consumers looking to buy IT products use social media for help deciding on a purchase. (Source: bigleap.com)
SaaS Industry Statistics
137. The Average SaaS portfolio has grown to 371 SaaS Apps (Productiv)
138. SaaS portfolios increased 32% between 2021 and 2023 despite tighter budgets and staffing restrictions (Productiv)
139. The average SaaS spend is $9,643 per employee (Productiv)
140. Small and medium sized businesses spend 11% more per employee than mid-market sized businesses (Productiv)
141. Mid-market businesses spend 34% more per employee than enterprise segments
142. Only 47% of SaaS licenses are actively used (Productiv)
143. Businesses of all sizes have slightly increased license usage since 2021, but 50% or more of licenses continue to go unused over a 90-day period in 2023 (Productiv)
144. The average department uses 87 SaaS apps (Productiv)
145. Salesforce, Atlassian, DocuSign, and Lucidchart are the dominating SaaS apps for these departments (Productiv)
146. One year contracts have increased as a percentage of all contracts from 79% in 2020 to 85% in 2022 (Productiv)
147. 3-year SaaS product contracts saw an increase of 7% in 2022 (Productiv)
148. The SaaS market is expected to hit $195,2 billion in 2023, up from 146.3 billion in 2021 (renaissance) (Productiv)
149. Gartner expects that 85% of organizations will embrace a cloud-first principle by 2025 (Productiv)
150. Microsoft 365 is estimated to be used by 880,000 companies (Productiv)
151. The 3 top purchased software categories are CRM’s, cybersecurity, and project management (Vendr)
152. The top purchased SaaS product for CRM was Salesforce (69.4%) followed by Hubspot (23.1%) (Vendr)
153. The top purchased SaaS product for Cybersecurity was Crowdstrike followed by Hackerone (Vendr)
154. The top purchased SaaS product for project management was Asan followed by Monday (Vendr)
155. Whille most SaaS tools can’t break past the $250,000 deal mark, Salesforce leads with a average negotiated price of $854,679 (Vendr)
156. High-value products such as Zoom, Slack, NetSuite, and Github have an average negotiated price ranging from $50,000 to $250,000 (Vendr)
157. Suppliers like Figma, Carta, and 1Password had lower average prices ranging from $20,000 to $49,999 (Vendr)
158. Software budgets are expected to increase by 11.3% in 2023 (Vendr)
159. The average SaaS contract value was $137,012 in Q1 of 2023 representing a 23% increase from all transactions in 2022 (Vendr)
160. SaaS prices saw a 23% increase across the board in 2023 (Vendr)
161. 57% of European and US companies increased spending in 2022 (paddle)
162. SaaS companies with 5+ARR saw a 36% median growth rate in 2021 (paddle)
163. 21% of European SaaS companies think hiring talent will be the biggest challenge in 2023 (paddle)
164. 60% PLG companies in Forbes’ 100 most valuable private cloud companies (paddle)
165. There was a 6.5% median change in YoY growth for SaaS companies in 2021 (paddle)
166. Salesforce grew its valuation from $161 billion to $251 billion from 2020 to 2021 (paddle)
167. In 2017, the US accounted for 63% of the world’s SaaS companies and 89% in funding, with silicon valley, New York, and Boston as the leading hubs (paddle)
168. Europe had 22% of the SaaS companies and just 5% of the world’s funding with London as the dominating SaaS scene (paddle)
169. However, the average funding round for London-based companies was $665,000 compared to the San Fransico, which had an average funding of $3 million (paddle)
170. 88% of VCs feel more confident investing in European tech in 2021 than in 2020. (paddle)
171. 37% of European SaaS companies surveyed by Serena Capital are addressing the US market. (paddle)
172. Among European SaaS companies launching in the US, 17% favor New York, followed by San Francisco and Boston. (paddle)
173. The Europe and Israel cloud market grew by 92% in 2021, compared to 29% growth in the US. (paddle)
174. The US produced more SaaS IPOs in 2021 than Europe and Israel (21 vs 11). (paddle)
175. The US raised more cash in 2021 ($827 million vs $557 million) compared to Europe and Israel. (paddle)
176. The US claimed half of all venture capital investment into tech in 2021, while Europe accounted for 18%. (paddle)
177. US companies are spending more on SaaS products than European companies, with a $521 per-employee SaaS spend accounting for a total revenue of $86.9 billion. (paddle)
178. If Europe grows its SaaS spend by an estimated 19.1% annually over the next four years, it would still be $5 billion less than the US. (paddle)
179. SaaS spending in the Asia-Pacific region grew by 40% year-on-year to $1.5 billion in 2021. (paddle)
180. SaaS is expected to grow at a compound annual growth rate (CAGR) of 28% from 2020-2026 in Latin America, driven primarily by Brazil and Mexico. (paddle)
181. Two in five start-ups in Brazil were SaaS businesses in 2020. (paddle)
182. 2021 saw a 125% year-on-year increase in the number of SaaS companies going public. (paddle)
183. SaaS companies that went public in 2021 had raised approximately $400 million in venture funding and burned around $200 million. (paddle)
184. These companies had an implied ARR of $225 million, which grew on average 55% year-over-year. (paddle)
185. The average revenue per customer was $52K, with companies also achieving a 119% net revenue retention. (paddle)
186. The companies that went public had a total addressable market (TAM) of $40 billion on average. (paddle)
187. The median net revenue retention (NRR) in 2021 was +101.8%. (paddle)
188. The average NRR for top-performing SaaS companies at IPO was +119%. (paddle)
189. The average NRR for $10 million+ companies was 120% (140% for $1-10 million companies). (paddle)
190. Customer acquisition cost (CAC) payback periods in 2021 were: 12 months for SMBs (€5–10 million ARR), 18 months for mid-market (€10 million+ ARR), and 25 months for enterprise (€100 million ARR). (paddle)
191. New customer CAC payback took an average of 26 months, while it took 18 months across new and existing customers (including upsells and upgrades). (paddle)
192. 29% of SaaS startups with less than $5M ARR met the Rule of 40, but those companies were also the most valuable, representing 62% of the public SaaS market cap. (paddle)
193. The average Net Promoter Score (NPS) is 30 for B2B software and SaaS. (paddle)
194. The cumulative value of Product-Led Growth (PLG) companies has grown more than 100x in the last six years. (paddle)
195. PLG companies make up roughly 60% of Forbes’ 100 most valuable private cloud companies. (paddle)
196. According to forEntrepreneurs’ analysis, field sales (60% for smaller companies, 55% for larger companies) and inside sales (26% for smaller companies, 29% for larger companies) dominated the sales strategies in 2021. (paddle)
197. Web-based/self-service only accounted for 3% of primary go-to-market (GTM) motions for both sizes of companies. (paddle)
198. 45% of SaaS companies experimented with usage-based pricing in 2021. (paddle)
199. Usage-based pricing (25%) is still less common than pricing based on the number of seats (41%). (paddle)
200. 15% of SaaS companies base their pricing primarily on modules or functionality. (paddle)
201. The average full-time SaaS employee accounts for $120,000 of ARR, increasing to $157,000 for
companies with more than $5 million ARR. (paddle)
202. Top-performing sales reps bring in 10 new customers per month (13%) and achieve more than €100,000 of ARR per month (14%). (paddle)
203. Companies should aim to bring in at least 5x the revenue per sales rep cost. (paddle)
204. The average customer value (ACV) increases the longer the sales cycle. For example, the average ACV for a two months sales cycle is below $5000, but at 3.3 months it’s $25,000-50,000 and over $100,000 after seven months.(paddle)
205. Best performing companies had one customer success manager overseeing €1 million+ ARR (19%) and just over a quarter had one customer success manager accounting for 100+ customers (27%). (paddle)
206. According to Atomico, 21% of the European tech community thinks hiring talent is the greatest challenge in the next 12 months. (paddle)
207. Over 50% of founders in a number of countries stated it had gotten harder to hire new talent. (paddle)
208. 57% of tech jobs were hard-to-fill in the Netherlands and 37% in the UK. (paddle)
209. In the US, demand for software engineering (69%), machine learning (417%), data science (167%), DevOps (443%), customer success (669%), and product manager (173%) skills have been increasing. (paddle)
210. In 2021, ‘hiring fast enough’ (~15%) and hiring the best talent (~12-13%) were the biggest causes of founder insomnia. (paddle)
211. 40% of US companies took on tech staff during the pandemic. (paddle)
212. 37% of UK-based founders said the depth of the talent pool was worse compared to 12 months ago, but 33% thought it had got better. (paddle)
213. The average European SaaS startup makes VP hires around the €1 million ARR mark. (paddle)
214. Three-quarters of job seekers and employees consider workforce diversity as an important factor when evaluating a job. (paddle)
215. 48% of adults would consider switching jobs if another company had a built-in DEI strategy. (paddle)
216. Twilio’s $1.2 billion IPO was achieved with just 12 people in its sales team. (paddle)
217. Three-quarters of job seekers and employees consider workforce diversity as an important factor when evaluating a job, according to Glassdoor. (paddle)
218. A 2020 Beqom survey cited by the Harvard Business Review found that 48% of adults would consider switching jobs if another company had a built-in Diversity, Equity, and Inclusion (DEI) strategy. (paddle)
219. Adopting a Product-Led Growth (PLG) model can reduce the need to invest in human talent to drive growth, according to Openview. (paddle)
220. Twilio achieved its $1.2 billion IPO with just 12 people in its sales team. (paddle)
221. SaaS companies need to bolster their DEI in a meaningful way and show off their cultural credentials to hire well in 2022. (paddle)
222. Gartner forecasts end-user spending on public cloud services to reach $396 billion in 2021 and grow 21.7% to reach $482 billion in 2022. (BMC)
223. SaaS is the dominant cloud service, with Gartner estimating that SaaS will maintain this dominance well into 2022. (BMC)
224. The SaaS market is currently growing by 18% each year. By the end of 2021, 99% of organizations will be using one or more SaaS solutions. (BMC)
225. Nearly 78% of small businesses have already invested in SaaS options, and SaaS adoption in the healthcare industry grows at a rate of 20% per year. (BMC)
226. 70% of CIOs claim that agility and scalability are two of the top motivators for using SaaS applications. (BMC)
227. The number of businesses specializing in SaaS that have IPOed in 2021 has increased 125% compared to the same period in 2020. (BMC)
228. In the first half of 2021, notable SaaS acquisitions include Docsend by Dropbox for $165 million, Kenna Security by Cisco, Chorus.ai by ZoomInfo for $575 million, and Blue Yonder by Panasonic Corporation. (BMC)
229. Significant SaaS IPOs of the last year include Couchbase, SentinelOne, Confluent, and Sprinklr. (BMC)
230. Research suggests that the number of competitors for SaaS firms starting around 2012 were less than three on average. By the end of 2017, every SaaS startup faced competition from nine other firms competing in the same SaaS market segment. (BMC)
231. By 2023, the global SaaS market is expected to reach $623 billion. (Clockwise)
232. The average cost of developing a SaaS application ranges from $40,000 to $250,000. (Clockwise)
233. The average SaaS startup spends 92% of its first-year revenue on customer acquisition. (Clockwise)
234. The average churn rate for SaaS companies is 5.33%. (Clockwise)
235. The average lifetime value (LTV) of a SaaS customer is $125,000. (Clockwise)
236. The average customer acquisition cost (CAC) for a SaaS company is $395. (Clockwise)
237. The average monthly revenue per user (ARPU) for SaaS companies is $182. (Clockwise)
238. The average time to recover CAC in SaaS is 8 months. (Clockwise)
239. The average monthly churn rate for SaaS companies is 4.79%. (Clockwise)
240. As of 2022, the SaaS industry has a market size of $186.6 billion. (Ardas)
241. The SaaS industry currently has an annual growth rate of 18%. (Ardas)
242. 39% of SaaS companies use value-based pricing. (Ardas)
243. The SaaS industry’s value is projected to grow to $700 billion by 2030.(Ardas)
244. SaaS revenue is expected to reach $369.4 billion by 2024. (Ardas)
245. SaaS growth can generate between $5 million to $100 million in annual recurring revenue. (Ardas)
246. 99% of companies will be using one or more SaaS solutions by the end of 2023. (Ardas)
247. As of 2023, 56.67% of all SaaS companies in the world are located in the United States. (Ardas)
248. The SaaS industry in the United States has a market value of $108.4 billion. (Ardas)
249. The SaaS industry in the United States is expected to reach a market value of $225 billion by 2025. (Ardas)
250. SaaS companies from the United States hold approximately 14 billion customers around the world. (Ardas)
251. As of 2021, these organizations globally use an average of 110 SaaS applications. (Ardas)
252. The largest SaaS company on the United States stock exchange is Salesforce.com Inc with a market cap of $183.07 billion, as of March 2023. (Ardas)
253. 98% of SaaS businesses experience positive results from dynamic pricing. (Ardas)
254. There are approximately 7,000 SaaS companies serving the marketing industry alone. (Ardas)
255. According to one study, 56% of SaaS companies do not offer a free trial. (Ardas)
256. The average churn rate at SaaS companies is approximately 5%. (Ardas)
257. On average, SaaS companies spend 92% of their first year’s revenue on customer acquisition. (Ardas)
258. According to a 2021 study, 48% of SaaS businesses reported having an average contract length of one year. (Ardas)
259. 70% of CIOs are attracted to cloud-based SaaS for its agility and scalability. (Ardas)
260. 86% of businesses that use SaaS report experiencing significantly higher employee engagement. (Ardas)
261. Companies that have adopted cloud platforms report that they can bring new capabilities to market approximately 20% to 40% faster. (Ardas)
262. The Compound Annual Growth Rate (CAGR) of the SaaS market for business applications is 16.4% between 2017 and 2022. (Ardas)
263. By the end of 2023, 99% of companies will be using at least one SaaS solution. (Ardas)
264. Approximately 70% of total company software use is SaaS as of 2022. (Ardas)
265. By 2023, the global SaaS market is expected to reach $623 billion. (Ardas)
266. The average cost of developing a SaaS application ranges from $40,000 to $250,000. (Ardas)
267. The average SaaS startup spends 92% of its first-year revenue on customer acquisition. (Ardas)
268. The average churn rate for SaaS companies is 5.33%. (Ardas)
269. The average lifetime value (LTV) of a SaaS customer is $125,000. (Ardas)
270. The average customer acquisition cost (CAC) for a SaaS company is $395. (Ardas)
271. The average monthly revenue per user (ARPU) for SaaS companies is $182. (Ardas)
272. The average time to recover CAC in SaaS is 8 months. (Ardas)
273. The average monthly churn rate for SaaS companies is 4.79%. (Ardas)
274. In 2021, worldwide end-user spending on public cloud services was projected to grow by 23.1%, reaching $332.3 billion. Among different cloud service segments, Software as a Service (SaaS) remained the largest, with spending expected to reach $122.6 billion in 2021. (Ardas)
275. Gartner reported that four key trends were driving growth in the public cloud services market in 2021 and 2022. These trends included cloud ubiquity, regional cloud ecosystems, sustainability, and carbon-intelligent cloud, as well as the automation of cloud infrastructure and platform services. Global end-user spending on cloud services was expected to reach $396 billion in 2021 and grow to $482 billion in 2022. (Ardas)
SaaS Marketing Trends to Look Out For
Personalization and Privacy-Conscious Marketing
With the phasing out of third-party cookies, SaaS businesses are prioritizing privacy-conscious personalization.
They are leveraging AI and machine learning to deliver highly personalized experiences to their customers while ensuring data privacy and security.
SaaS Companies Will Need to Build Better Brand Stories
If you want your marketing to work, your branding will have to go beyond just logos and taglines.
For branding to work, you need to create a brand journey that builds awareness and trust with your audience.
Modern customers crave more depth from SaaS beyond their initial offering.
For SaaS brands aiming to engage and sustain their audience, solidifying their brand journey is huge.
Meaning, if you want to stand out from your competition and be top of mind for your audience, you need to build a memorable brand journey that’s supported by a strong value proposition.
SaaS Companies Will Need to Leverage Video Marketing More
Video marketing continues to play a significant role in SaaS marketing. It has high viewership and conversion rates, allowing companies to effectively communicate their brand stories and product value propositions to a wide audience.
AI and Machine Learning Enhancing Marketing Campaigns
AI and machine learning technologies are being used to enhance SaaS marketing campaigns. They enable data-driven strategies, hyper-personalization, and dynamic pricing.
AI-powered chatbots improve customer interactions, while AI-generated content and precise machine-learning algorithms enhance marketing effectiveness.
SaaS Companies Will Shift to Focus More on Customer-Centricity and Retention Optimization
Building strong brand identities and providing positive customer experiences are essential for SaaS businesses.
Customer-centric strategies, such as personalized onboarding and advanced notifications, help improve customer retention rates.
Optimizing customer retention is a key focus to drive revenue growth in the highly competitive SaaS market.
SaaS Industry Trends to Watch Out For
More Low-Code/No-Code Platforms = More SaaS Companies
One trend the SaaS industry will likely see is the influence of low-code/no-code platforms.
Low-code/no-code platforms are software development apps that allow users to create software products without having any coding knowledge.
These apps won’t overhaul the SaaS industry, but they might create some problems. Software employees can expect to see a larger talent pool due to non-coders entering the job market. We may even see jobs outsourced to non-coders as they can charge less than software engineers.
However, there are some drawbacks to low-code/no-code platforms as these apps can’t create complex software applications. The libraries used in these apps are also limited too so flexibility will be severely limited
Another way we can see low code/no code apps impacting SaaS is the increase of software products in the market. Especially with the recent rollout of Google’s AppSheet, almost anyone can spend time developing software products. Including myself, who has very limited knowledge of coding.
But again, this limited flexibility in terms of customization will severely limit the capabilities these software products have. The only real benefit in this case is being able to create software applications cheaper and at a faster rate than traditional software development
Only time will tell with how low code/no code development platforms impact the SaaS industry.
Remote Work Software Will Continue to Boom
With the continued growing popularity of remote work, we can expect to see a larger dependence on remote work software.
As of 2023, 27% of U.S. employees work remotely, which is four times the number who worked remotely before the pandemic.
A study by AT&T found that the hybrid work model is expected to grow from 42% in 2021 to 81% in 2024. It’s expected there will be 36.2 million U.S. employees working remotely by 2025. And the employee demand for remote work has increased by almost 400% since 2016.
With more remote positions than ever before, in-office employers are finding it difficult to retain top talent who are leaving for remote or hybrid positions.
With this remote work trend continuing to grow, it can be expected that more in-office employers will switch to either a fully remote or hybrid model in the near future to help retain staff.
But because of this shift in traditional work models, there will be pain points that arise.
And with these pain points, there will likely be a software product that helps solve them.
While project management (Asana) and communication software (Slack/Zoom) are currently the main software products for remote work, we can expect to see a rise in software products for different pain points of remote work.
Expect to see more SaaS products for things like time tracking, employee efficiency, and employee payments.
Let’s hope not with the time-tracking software though.
SaaS Integrated with AI Will See a Sharp Rise in Healthcare
In a recent study done by JAMA Internal Medicine, ChatGPT scored 21% higher than physicians for the quality of responses and was considered to be 41% more emphatic.
While this is certainly concerning considering ChatGPT’s accuracy, this statistic still shows a potential glimpse into the future of medical SaaS products.
With consumers currently preferring AI over medical professionals, it shows the potential value SaaS products can bring by personalizing their software with large language models.
This preference for AI over medical professionals could be due to a number of factors like response times and cost, but it highlights how consumers prefer to have personalized results at the touch of a button.
Think of how introverted people prefer texting over calls, it’s the same case with this. Users prefer to receive medical advice straight from the comfort of their own home, without any of the hassles of meeting with medical professionals. Maybe they even feel more comfortable asking AI more private questions that they otherwise wouldn’t ask their doctor out of fear of judgment.
While this software still has a long way to go, expect to see AI-integrated healthcare software products sometime in the near future.
Think of how Healthline publishes content on illnesses and diseases, now imagine that but with personalized results while having access to your medical history.
SaaS integrated with AI for healthcare is almost inevitable at this point, but it begs the question of the legal ramifications, specifically medical malpractice, misinformation, and misdiagnoses.
With great opportunities come great risks.
SEO and Content Marketing Will Continue to Deliver for SaaS Companies
Another SaaS trend you can expect to see is the continued use of SEO and content marketing for brand awareness and lead generation. In fact, organic traffic on average makes up 26.4% of all SaaS website traffic.
The reason content marketing has been so popular for SaaS is because it can help software companies:
- Form and nurture long-term customer relationships
- Position their brand as a thought leader in the industry
- Have higher visibility and greater reach among a target audience
- Move prospects along the buyer journey
- Build strong customer relationships and increase retention
- Attract and find their target customers organically without needing to spend money on advertising (inbound vs outbound)
But a larger reason for the success of content marketing for SaaS is due to its product-led approach.
The main goal for SaaS content creation is to answer your target audience’s pain points while positioning your product as a main solution.
Use Ahrefs (one of the best SaaS SEO tools) as an example. Almost every piece of content they develop is product-led.
They’re not only helping readers learn SEO, but they’re also incorporating their software to show readers how their software can be used to do SEO efficiently.
For a perfect example of this, check out this blog: 15 Easy SEO Tips for Higher Rankings.
SEO tips for higher rankings is a general question that has no brand attachment whatsoever. However, every tip they offer, all 15 of them, mentions how you can achieve higher rankings using their tool.
There’s an important point to mention here, and SaaS companies fall into this trap all the time; you’re not promoting your software, you’re exhibiting your software.
A very small difference, but a large one that most SaaS companies can’t tell apart.
So in this product-led approach to SaaS content marketing, you’re not only answering your reader’s question (or serving their intent), but you’re also showcasing how your software can help them. You’re showing, not telling.
This product-led approach to SaaS content marketing is a win-win too. You’re generating brand awareness while positioning your content to generate leads.
You have the reach of high-volume keywords while showcasing the many benefits of your software.
Once SaaS marketing teams wrap their head around this concept, we can expect to see an influx of companies using this product-led approach to their content strategy.
A Higher Need for Employee Retention Software
Another SaaS trend to expect is the rising need for employee retention software. Going back to the point made about remote work software, another aspect businesses have to consider is how to retain employees, especially top talent.
There are four main causes of turnover:
- Lack of growth and progression
- Inefficient management
- Inadequate compensation
- Poor workplace culture.
Because of these pain points and the addition of remote work, we can expect more SaaS products to fill in the gaps where employees feel unsatisfied.
While software won’t make up for these pain points, it can at least improve employee satisfaction.
In fact, nearly 40% of employees felt unsatisfied with their jobs in 2022, with 60% reported feeling emotionally detached at work.
With this feeling of detachment, we can expect a higher need for software that helps:
- Improve communication
- Increase employee engagement
- Gather feedback
- Recognize employees for their hard work
- Enhance company culture with employee surveys
- Improve workflow with project management tools
- Make communication more effective with messaging software
- Improve transparency
- Automate the performance management process
- Provide a transparent and objective system for setting goals, giving feedback, and tracking progress
- Increase employee satisfaction and motivation
- Build a better understanding of an employee’s entire growth trajectory
- Create a culture of learning
- Hire the right people from the start
- Offer pay that is competitive and fair
- Improve the onboarding experience
- Foster stronger connections at work
- Provide strong leadership
- Provide frequent feedback, including recognition
- Provide opportunities for advancement
- Provide competitive compensation packages
- Provide a good work/life balance
These are a lot of areas software products can help out with, but it’s important to remember that the software will not be the all-around cure for employees’ woes, and retention will ultimately come down to the company, not the software.
As a side note, I provide marketing services for HR SaaS companies if you are looking for help.
Wrapping Up On These SaaS Marketing Statistics
The SaaS industry has experienced exponential growth and widespread adoption, driven by the need for digital innovation, remote work, and the benefits offered by subscription-based models hosted on remote cloud networks.
With spending on public cloud services, including SaaS, projected to reach $482 billion in 2022, and estimates of the SaaS market reaching $138 billion by the same year, it is clear that SaaS solutions have secured a dominant position in the IT landscape.
As technology advances and new trends emerge, the SaaS industry will remain a key player in shaping the future of business operations, offering organizations the flexibility, scalability, and innovation they need to thrive in the digital age.