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

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

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

Customer Segmentation analysis will help point out which are your most profitable segments

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

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%

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

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

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

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

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

More Growth Strategy Stats

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

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

Three uses for the SaaS Guidelines

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

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

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

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

Growing faster has twice as much impact on share price as improving margins

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

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