Statistic Info

An acceptable churn rate is in the 5 – 7% range ANNUALLY, depending upon whether you measure customers or revenue.

And BVP’s assertion is backed up by Pacific Crest in their Private SaaS Company Survey Results that show roughly 70% of SaaS companies in their survey had annual churn in the < 10% range, with 75% of those at 5% or under.

The way I read the results of Pacific Crest’s survey is that 30% of SaaS providers surveyed have an unacceptable level of churn.

Now what about the SaaS providers that aren’t included in surveys like that one or who don’t appear in the logo list of the top investor portfolios and who are just trying to grow? Are they doing better or worse?

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More SaaS + Software Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Growing faster has twice as much impact on share price as improving margins

Improve Your Pricing Schedule And Turn More Profit

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

Software and online services are in a period of dizzying growth

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

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 very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

More Growth Strategy Stats

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers