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Great post but the 75% retention thing was odd. All of the SaaS companies we know would flip their shit if annual retention dipped below 98%. Even 98% would be
by rgrieselhuber 13y ago
Great post but the 75% retention thing was odd. All of the SaaS companies we know would flip their shit if annual retention dipped below 98%. Even 98% would be very painful.
- usaar333 13y ago98%? Can I ask who your SaaS companies are selling to? If you are reaching a diverse business audience, I would think > 2% of your customers each year would implicitly cancel by going bust.
- rgrieselhuber 13y agoThat would be surprising. If more than 2% of my customers every year were going out of business, I'd come to the conclusion that I was selling to the wrong audience.
- andrewcamel 13y agoAnnual retention is honestly considered fairly strong <20%.
- rgrieselhuber 13y agoFor SaaS? That means you're turning over your entire customer base in less than six months.
- andrewcamel 13y agoYou said annual?
- rgrieselhuber 13y agoYes. Are you saying that annual retention (not churn) of <20% is considered strong?
- andrewcamel 13y agoSorry I meant churn, but >80% annual retention is very good. 98% annual retention is unheard of in pretty much any decently sized business I've seen.