The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

Statistic Info

An acceptable churn rate is in the 5 – 7% range ANNUALLY, depending upon whether you measure customers or revenue.

And BVP’s assertion is backed up by Pacific Crest in their Private SaaS Company Survey Results that show roughly 70% of SaaS companies in their survey had annual churn in the < 10% range, with 75% of those at 5% or under.

The way I read the results of Pacific Crest’s survey is that 30% of SaaS providers surveyed have an unacceptable level of churn.

Now what about the SaaS providers that aren’t included in surveys like that one or who don’t appear in the logo list of the top investor portfolios and who are just trying to grow? Are they doing better or worse?

In my experience, it’s quite often worse… and sometimes much worse (as you’ll see in a second).

Honestly, for those companies, it isn’t a lack of customers in the front door that is stopping their growth; it’s the constant flow of customers out the back door that is killing their business!

More SaaS + Software Stats

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

How To Make Pricing A Constant Process In Your Organization

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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%

More Growth Strategy Stats

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

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%)

High-growth companies generate 60% fewer sales opportunities than low-growth companies

How To Make Pricing A Constant Process In Your Organization

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

Women in western countries use the internet 17 percent more than their male counterparts

Improve Your Pricing Schedule And Turn More Profit

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.