Software Executive Magazine

August/September 2017

Software Executive magazine helps software executives grow their businesses by showcasing the business best practices of our readers, executives from established and innovative software companies.

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Churn Benchmarks For B2B SaaS Companies SOURCE: SaaS Capital SaaS Capital's Committed Credit Facilities are specifically designed to fund the growth of a SaaS business in lieu of a round of equity, providing $2 million to $15 million to SaaS companies with $200K and up in monthly recurring revenue (MRR). SaaS Capital recently published a report on churn benchmarks for B2B SaaS companies. Consistently retaining customers is an important characteristic of any successful SaaS business — here's a look at how your company compares to the industry. To download the complimentary full report, visit www.saas-capital.com/resources . The sustained improvement in retention associated with a Customer Success leader (6 percentage points) will improve total revenue, growth, and profitability leading to an expected 74% increase in enterprise value in 5 years. Annual contract value has a fundamental and independent impact on revenue retention. Customer success gets harder as businesses get larger (and older). 12% Increased value over 5 years with each percentage point increase in net retention Median Retention By Company Size 89 % Median gross retention rate for ACV BELOW $1,000 95 % Median gross retention rate for ACV ABOVE $150,000 95% Median gross retention rate for SaaS Companies BELOW $1M 87% Median gross retention rate for SaaS Companies ABOVE $20M Retention 100 98 96 94 92 90 88 86 84 82 80 $1M to $5M Less than $1M $5M to $10M $10M to $20M Above $20M Net Gross 99 95 97 97 99 96 87 89 90 90.5 SOFTWAREEXECUTIVEMAG.COM AUGUST/SEPTEMBER 2017 11 BY THE NUMBERS Index

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