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.

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Three uses for the SaaS Guidelines

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

How to Reduce Churn

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

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

More Growth Strategy Stats

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

80% of venture capital investments take place in the enterprise

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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 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

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

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

Invention is 10% inspiration and 90% perspiration.

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

September 19, 2019 Seminar

Driving Traffic To Generate Leads: Content Marketing, Paid Ads & SEO

If your business if starving for new leads but struggling with all of the noise, rising costs, and a rapidly changing landscape of the digital marketing world, this seminar will equip you with what you need to gain momentum and leave with an actionable gameplan.


Details + Registration