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32% of respondents experienced an annual churn rate of 5% or less, while almost one-?fth had churn exceeding 15%. Survey responses suggest mixed results in controlling churn. While slightly over one-third report a decrease in churn over last year, 30% of respondents saw an increase in churn and the balance 34% saw no signi?cant change. Annualized Revenue Churn Rate 0-5% churn 5-10% churn 10-15% churn

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Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Companies with longer contracts (2+ years) reported the lowest annual unit churn

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

How to Reduce Churn

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

More Growth Strategy Stats

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

Growing faster has twice as much impact on share price as improving margins

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

Companies with longer contracts (2+ years) reported the lowest annual unit churn