Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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.

More SaaS + Software Stats

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

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

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

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

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 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

54% treat upselling and add-on sales as high priority

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

Internet Sales strategies have a significantly lower CAC of just $0.42

Companies with longer contracts (2+ years) reported the lowest annual unit churn

More Growth Strategy Stats

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

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

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

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

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

55% of SaaS companies rate Customer Retention as the key metric to measure

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

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale