At least 100% net negative churn (i.e., upsell/account growth + renewals – churn)  for very small businesses. 130%+ in the enterprise, and for top B2D products.

Let’s look at some of the top public SaaS companies:

  • Workday, only 100% in the enterprise, but 95% gross retention.  This suggests they are very good at closing the “entire” deal when they do close a customer.  Still, mathematically, this may be why growth has slowed to below 20% YoY.
  • Box, 106%, mix SMB, SME and enterprise, relatively low ACV.
  • New Relic, 116% now, but 130% at IPO.  Mix SMB and enterprise but most deals > $100k today.
  • Zendesk,116% at $1B ARR, mix of SMB and enterprise.
  • Okta. 120% net revenue retention, enterprise.
  • Medallia, 120% net revenue retention, enterprise.
  • Qualtrics, 122% before acquisition by SAP.

As a side note, net revenue retention is not a GAAP metric and a number of folks exclude trials, rapid churn, and a few other elements.  But the metrics are directionally enough correct to be used to compare the above SaaS leaders to each other — and to you.
A final thought — this becomes ever more important as you scale.  73% (!) of Salesforce’s new bookings come from its existing customers now.  More on that here.

And a bit more overall here: The Fastest Growing Unicorns Have This In Common

Related Posts

Pin It on Pinterest

Share This