55% of SaaS companies rate Customer Retention as the key metric to measure

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

SaaS company growth rates are strongly in?uenced by customer retention and upsell For the third year in a row, the survey indicates that the fastest growing SaaS companies have a signi?cantly better record on churn and upsell, underscoring the critical role of managing revenue from existing customers in the SaaS business model.

Totango

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A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

SaaS solutions have the highest security features with 95% security failures due to human error

More than 1/2 of SAAS companies increased their spending on customer retention last year

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The best place to hide a dead body is page 2 of Google search results.

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

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SaaS organizations are now operating in over 100 countries

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

47% of millennials want to work at diverse companies, according to a recent study.

Women in western countries use the internet 17 percent more than their male counterparts

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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