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.

More SaaS + Software Stats

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

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

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

In contrast, only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

More Growth Strategy Stats

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

A 1% increase in pricing strategy yields an average 11% increase in profit

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

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