As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

Statistic Info

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

More SaaS + Software Stats

56% treat “Existing Customer Renewals” as high priority

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

Is your SaaS business viable?

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

More Growth Strategy Stats

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

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

Growth happens in phases

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

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