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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

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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SaaS organizations are now operating in over 100 countries

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

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

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

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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

SaaS IPOs have more than doubled over the last 12 years

80% of venture capital investments take place in the enterprise

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

More SaaS & Tech Growth Strategy Stats

Is your SaaS business viable?

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

47% of millennials want to work at diverse companies, according to a recent study.

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

How To Make Pricing A Constant Process In Your Organization

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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