So SaaS Capital put out its latest report on SaaS retention and NRR after having surveyed over 1,500 SaaS companies and professionals. You can download it here.
There are a lot of great learnings and metrics in the report, and a few stood out to me:
#1. Annual Contracts Didn’t Boost NRR, And Even Multi-Year Contracts Only Had a Modest Impact on NRR. We tend to intuitively think annual contracts help combat churn, but they really don’t — they just defer it. And as time goes on, that doesn’t really help you much. This data confirms that. Let customers buy the way they want to buy.
#2. Median NRR is 102% across all SaaS companies, Media Gross Retention is 91%. Not a profound learning, but a great confirmation.
#3. NRR Gets Better as You Cross $10m ARR. This is consistent with my experience and across 30+ investments. You start to go upmarket, you get better at sales and upsell, and you start to add more value, and learn to close bigger customers and make them happier. So keep increasing that NRR target as you march to $20m ARR!
More at the full report here:
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Jason Lemkin, Khareem Sudlow
