Statistic Info

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.

For Entrepreneurs.com

More SaaS + Software Stats

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

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

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

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

More Growth Strategy Stats

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

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

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

How to Reduce 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

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

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

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