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

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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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How to Reduce Churn

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

More SaaS & Tech Growth Strategy Stats

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

At Facebook, 15 percent of tech roles are staffed by women

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

Cloud-hosted applications have a 99% uptime

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

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide