Stats & Quotes

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
Growth Strategy
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A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses
Growth Strategy
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Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs
Growth Strategy
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As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn
B2B SaaS User Retention
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In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%
Growth Strategy
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The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
Growth Strategy User Retention
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Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
Growth Strategy
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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
Growth Strategy
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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
Growth Strategy
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High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.
Growth Strategy
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