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!
sixteenventures.com
More Growth Strategy Stats
Google only has a 30 percent female workforce
80% of venture capital investments take place in the enterprise
In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.
Software and online services are in a period of dizzying growth
How Often Should The Pricing Committee Be Meeting And Making Changes?
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million