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

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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.

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If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

How to Reduce Churn

More Growth Strategy Stats

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

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

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

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

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding