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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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More SaaS + Software Stats

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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

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All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

More Growth Strategy Stats

Software and online services are in a period of dizzying growth

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month