SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Statistic Info

The median annual contract size (subscription component only) for the group was $25K per year. These results are somewhat above the previous survey medians of $21K, $21K, $20K in 2015, 2014 and 2013, respectively.

The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

More SaaS & Tech Growth Strategy Stats

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

How to Reduce Churn

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

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

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

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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%

80% of venture capital investments take place in the enterprise

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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