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

Statistic Info

Annual trends suggest that metrics such as customer retention cost, customer health, and customer lifetime value are the next big metrics respondents plan to track. Which Metrics Do You Plan To Track? Customer acquisition cost Conversion rates (free to paying) # of new trial or free signups Website unique visitors Customer retention cost Customer health Customer Lifetime Value (CLV) Net Promoter Score (NPS)

More SaaS + Software Stats

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month 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

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

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

80% of venture capital investments take place in the enterprise

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

More Growth Strategy Stats

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

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs