Statistic Info

Consistently retaining customers is an important characteristic of any successful SaaS business, and an entire industry, Customer Success, has sprouted up to help SaaS executives do just that. However, knowing what is a “good” retention rate for your individual SaaS company remains difficult to pin down. This research helps answer that question based on our survey of over 700 private SaaS companies.

SaaS customer retention is broken down by:

  • average contract value
  • company size
  • company age

This brief also explores the relationship between growth and retention, the “false positive” retention rates of young SaaS businesses, and the impact of Customer Success programs on overall retention.

Saas Capital

More SaaS + Software Stats

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

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

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

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

More Growth Strategy Stats

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

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

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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

The average SaaS company spends just 6 hours determining their pricing strategy

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.