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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.

As contract sizes increase, gross dollar churn consistently trends downwards (presumably related to longer contract terms). This year’s results were largely consistent with last year’s. However, churn trended up markedly for the smaller size contract groups (<$5K median ACV).

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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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

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

The median annual unit churn for SAAS companies was 10% in 2016

Three uses for the SaaS Guidelines

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

When venture capitalists participate in seed rounds, the average round size is 3x larger

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Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Analyzed 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

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

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

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