Keeping an eye on statistics is important. It can help both SaaS vendors and customers understand the landscape of the industry.
Ariel Diaz, Founder and CEO of Blissfully, offered some important industry stats for the SaaS Connect to walk away with.
Here’s what was covered, along with what his numbers mean both for vendors and customers.
How many SaaS subscriptions do SMBs have?
Many SaaS companies are targeting small businesses. It’s an important market, and that means understanding how and when they interact with the SaaS market is crucial.
On average, SMBs use 20-plus paid SaaS products and 30-plus free SaaS products. They spend more than $20,000 per month on those subscriptions.
SaaS vendors should take note of this for targeting purposes. See how your customers’ spends compare to the average spend.
Bigger companies use more SaaS products than smaller companies do. That said, SaaS adoption rates are similar across both SMBs and enterprises. And at companies of all sizes, people use three free products to every one paid product.
What business units are buying SaaS products?
The bigger the company, the more that company invests in sales. That means SaaS vendors will spend more time working with sales teams with bigger companies. At smaller companies, the work will more focus on engineering and marketing teams.
What are some trends among vendors?
There are more vendors now than ever before.
While the top 20 make well-known apps, we’ve also seen an explosion in the number of vendors. Some categories are growing faster, others are more mature.
What can we learn from these stats?
SaaS vendors need to be aware that competition is more intense now than it ever has been, but the market is also growing and exploring underserved categories.
For SaaS customers, more vendors can lead to more confusion and chaos. Tools need to be put in place to manage the tangle of apps a company can have.