What is a good retention rate for software?

As a result, SaaS businesses typically enjoy high retention rates. With this in mind, 90% is generally a good SaaS retention rate to aim for. However, rates can get as high as 97%, often rising and falling fairly consistently.

What is considered a good retention rate?

A good employee retention rate is an indication that an organization has a strong retention strategy and is experiencing low turnover. A retention rate of 90% or higher is considered to be a good retention rate, meaning organizations should strive for an average employee turnover rate of 10% or less.

What does 80% retention rate mean?

The industry average falls between 70% and 80%. Customer retention rate shows how many customers return to your product, whereas churn rate measures how often customers leave. Other important customer retention metrics are revenue churn rate, Net Promoter Score, repeat purchase rate, and customer lifetime value.

What is the benchmark for retention in SaaS?

Customer Retention Rate

Expressed as a percentage, this shows the number of repeat customers in a given timeframe divided by total number of customers at the start of that timeframe. 85-90%+ retention is a strong benchmark for SaaS.

What is a good annual churn rate for SaaS?

5 - 7% annual churn is a great benchmark to aim for - if you're an established, mature SaaS company, primarily targeting the enterprise. If you're earlier-stage, or targeting SMBs, expect churn to be closer to 5% per month.

WHAT AUDIENCE RETENTION RATE Do You Need To Get SUGGESTED BY YOUTUBE? Exposing my audience retention

What is the rule of 40 in SaaS?

The Rule of 40 is a principle that states a software company's combined revenue growth rate and profit margin should equal or exceed 40%. SaaS companies above 40% are generating profit at a rate that's sustainable, whereas companies below 40% may face cash flow or liquidity issues.

What is the average churn rate for software?

Digital Media and Entertainment, Consumer Goods and Retail, and Education industries have an average churn rate of 6.5%. In contrast, their B2B counterparts–Software and Business & Professional Services–have an average churn rate of 3.8%.

What is the SaaS retention benchmark for 2023?

Across all SaaS companies, the 2023 median net retention is 102%, which is unchanged from 2022. Median gross retention is 91%, also unchanged from the previous year's survey.

What is the churn rate for SaaS 2023?

Monthly Churn Rate Benchmarks for 2023

For small to medium-sized SaaS businesses (SMBs), which typically bill monthly, you'll see a churn rate between 3 and 7%. Businesses that purchase software from SMBs tend to do so in a lower price range, which leads to a lower switching cost based on the subscription model.

Is a 70% retention rate good?

There is no absolute universal rule for it, but as a general rule suggested by some experts, an employee retention rate of 90% or above is considered good. This means that a company should try to keep its employee turnover rate under 10% or less at all costs. However, it also varies by industry.

Is 30% retention rate good?

Industry Benchmarks

The average 30-day rate broken down by industry ranges from 27% to 43%, but for higher performing apps, that range is 32% to 66%. See more details here. While the average hovers around 20% 90-day retention, it's best to aim for 25% or higher depending on your industry.

What is a poor retention rate?

As a general rule, employee retention rates of 90 percent or higher are considered good and a company should aim for a turnover rate of 10% or less.

Is 50% retention rate good?

The average YouTube viewer retention rate is right around 50-60%, and you would think that the ultimate goal would be a viewer retention rate of 100%. But a recent study actually found that videos with higher click throught rates (CTR) get more views.

What are the retention statistics for 2023?

The average tenure of an employee in 2023 was 4.1 years. Workers aged 55 to 64 had an average tenure of 9.9 years, while workers aged 25 to 34 had an average tenure of only 2.8 years. Moreover, men had longer average tenure than women, at 4.3 years versus 3.9 years.

What is the average turnover rate in tech industry?

According to a turnover report from LinkedIn, the tech industry has the highest turnover rate at 13.2%. In fact, even global tech giants often struggle with low employee tenure. Most have a median employee tenure of only one or two years.

Which industry has the highest retention rate?

Top 5 Customer Retention Stats in 2024

Media and professional services have the highest industry retention rates (84%). The hospitality/travel/restaurant industries have a retention rate of just 55%.

What is typical churn in B2B SaaS?

Average Churn Rates for B2B SaaS

While that's a nice, round number, it essentially means that your business will be changing out their customer base every 10 months. Here are the average churn rates annually: Logo Churn Rate: 3-7% for smaller companies and 1-2% for larger companies.

What is the KPI churn rate?

Customer Churn Rate is a KPI used to measure customer attrition. It is calculated by dividing the number of customers who discontinue a service during a specified time period by the average total number of customers over that same time period.

What is the churn rate of Netflix?

Monthly streaming service churn

This data comes to us via Antenna, a company that tracks subscription services. And it shows that Netflix consistently has a churn rate of about 2%. That's way, way below all of its competitors, who at the moment have a weighted average of 5.3%.

What is a good retention rate for B2B SaaS?

For B2B SaaS brands to have a chance at competing with their peers, their GRR must be at least 80%. The research also revealed that there's no correlation between GRR and growth rate for GRR above 80%. Median Net Retention is 102%, across all SaaS businesses. Median Gross Retention is 91%, across all SaaS businesses.

What is Microsoft retention rate?

Microsoft Retention At a Glance

Microsoft's Retention score is rated a "B+" by 4171 employees. The category helps understand Microsoft's focus and commitment to retaining employees in their organization. Over the past three months, Microsoft's Retention score has remained steady at 76/100.

What is your average retention rate?

What is a good employee retention rate? Generally, an average retention rate of 90% or higher is what to aim for, meaning a company will want an average employee turnover rate of 10% or less. In 2022, the average turnover rate² was around 9.3%.

What is the difference between retention rate and churn rate?

Churn rate is the percentage of customers who stop using your product during a given period of time. Retention rate is the percentage of existing customers who continue using your product.

What is considered high churn?

A churn rate of 3% or lower is considered excellent, while a churn rate of 8% or higher is cause for concern. Of course, these are just general benchmarks. The ideal churn rate for your SaaS business will depend on a number of factors, including your specific industry and business model.

What is the golden rule of SaaS?

The Rule of 40 states that, at scale, the combined value of revenue growth rate and profit margin should exceed 40% for healthy SaaS companies. The Rule of 40 – popularized by Brad Feld – states that an SaaS company's revenue growth rate plus profit margin should be equal to or exceed 40%.