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The phenomenon of longer contract terms for larger contracts is pretty clear. Companies in the “elephant hunter” group are less aggressively booking super long-term contracts. Respondents with >$250K median ACV book nearly 25% of their contracts at 3 years or longer (down from 35% in the 2015 group).

For Entrepreneurs.com

More SaaS + Software Stats

56% treat “Existing Customer Renewals” as high priority

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

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

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

More Growth Strategy Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

Google only has a 30 percent female workforce

How to Reduce Churn

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

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

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