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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

InsightSquared

More SaaS + Software Stats

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

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

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%

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

56% treat “Existing Customer Renewals” as high priority

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

More Growth Strategy Stats

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Negative Churn and Expansion Revenue

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

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