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The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

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More SaaS + Software Stats

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%

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

Is your SaaS business viable?

More Growth Strategy Stats

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

54% treat upselling and add-on sales as high priority

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