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.

More SaaS + Software Stats

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

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

After $10M in ARR, the median growth rate slows to just under 50%

How to Reduce Churn

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

More Growth Strategy Stats

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

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)

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

How To Make Pricing A Constant Process In Your Organization

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

80% of venture capital investments take place in the enterprise