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

SaaS IPOs have more than doubled over the last 12 years

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

How to Reduce Churn

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

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%

More Growth Strategy Stats

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

80% of venture capital investments take place in the enterprise

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

How to Reduce Churn

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.