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

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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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Is your SaaS business viable?

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”

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Negative Churn and Expansion Revenue

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

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

More Growth Strategy Stats

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

At Facebook, 15 percent of tech roles are staffed by women

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

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

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