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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

Median annual gross dollar churn (without the benefit of upsells) is ~8%. This result is comparable to past survey results (7% in 2015, 6% in 2014, 8% in 2013).

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

For Entrepreneurs.com

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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%

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

How To Make Pricing A Constant Process In Your Organization

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

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

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%)

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

73% of organizations indicated nearly all their apps will be SaaS by 2021

More SaaS & Tech Growth Strategy Stats

How To Make Pricing A Constant Process In Your Organization

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)

55% of SaaS companies rate Customer Retention as the key metric to measure

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

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

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

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