Quote 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.

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

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More SaaS + Software Stats

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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

More Growth Strategy Stats

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

Women in western countries use the internet 17 percent more than their male counterparts

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

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

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)