Statistic Info

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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More SaaS + Software Stats

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

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

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

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

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

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

More Growth Strategy Stats

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

Growing faster has twice as much impact on share price as improving margins

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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