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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

The median annual unit churn for SAAS companies was 10% in 2016

54% treat upselling and add-on sales as high priority

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

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

80% of venture capital investments take place in the enterprise

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

More Growth Strategy Stats

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

Is your SaaS business viable?

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

They may forget what you said, but they will never forget how you made them feel.