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

Quote Info

Account Churn is very important because it gives a very clear percentage of the customers that are leaving you. It takes away the bias from larger accounts so that you aren’t left with one large customer paying for all of your revenue – which is a dangerous situation to be in

More SaaS + Software Stats

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Improve Your Pricing Schedule And Turn More Profit

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

More Growth Strategy Stats

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

SaaS IPOs have more than doubled over the last 12 years

How To Make Pricing A Constant Process In Your Organization

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.