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.

More SaaS + Software Stats

SaaS Bookings: Three Contributing Elements

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

How to Reduce Churn

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

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

Revenue Churn vs Customer Churn – why are they different?

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

More Growth Strategy Stats

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Growth trumps all

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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%

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

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

What Levers are available to drive Growth

July 11, 2019 Seminar

Marketing Uncovered: Market Research & Assessments To Win

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