The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

From For
Statistic in SaaS & Tech Growth Strategy

To study churn, we need to look at a particular group of customers that signed up in a particular time period. We refer to these groups as cohorts. So you might have a Jan 2014 cohort which is comprised of all the customers that signed up in Jan 2014. We will then want to track how many customers we retain, and how the revenue for each cohort evolves over time. Here is a graph that shows what happens to the number of customers in a particular cohort over several years with three different monthly Customer Churn Rates.

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

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

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

Cloud-hosted applications have a 99% uptime

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

More SaaS & Tech Growth Strategy Stats

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

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

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

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

Customer Segmentation analysis will help point out which are your most profitable segments