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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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

How to Reduce Churn

The best place to hide a dead body is page 2 of Google search results.

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

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

After $10M in ARR, the median growth rate slows to just under 50%

Is your SaaS business viable?

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

More Growth Strategy Stats

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.

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

How to Reduce Churn

Three uses for the SaaS Guidelines

73% of organizations indicated nearly all their apps will be SaaS by 2021

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

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