Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

From InsightSquared
Quote in SaaS & Tech Growth Strategy

You need to be thinking about how the length of each contract will affect churn in a given period when you calculating renewal rate.

More SaaS & Tech Growth Strategy Articles

How Technology Companies Can Leverage Focused Niche Markets

SaaS Trends and Stats You Must Know in 2022

Create a Tangible Strategic Vision

Evaluating Your Software Brand Positioning Through SWOT Analysis

What Type of Media is Right for Your Target Audience?

How to Determine a SaaS Marketing Budget

Motivational Quotes for Marketing Professionals

Small Ways to Add Big Personality to Your IT Site

SaaS Sales Funnel

Assessing Your Brand, Website & Marketing

More SaaS & Tech Growth Strategy Stats

Software and online services are in a period of dizzying growth

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts