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2021 SaaS Retention Benchmarks for Private B2B Companies

2021 Retention Benchmarks for Private B2B SaaS Companies

As we have noted for several years, revenue retention is one of the most important metrics for ensuring medium- to long-term business health due to its compounding effect on growth.

This research brief provides current retention benchmarks based on data from SaaS Capital’s 10th annual survey of more than 1,500 private B2B SaaS companies. The priority of this survey was to understand the impacts to SaaS companies caused by the economic shutdowns following the COVID-19 outbreak.

In addition to net retention and gross retention benchmarks across all SaaS companies, the research brief explores retention in the context of annual contract value (ACV), growth, size, funding, and more. Key findings include:

  • Any COVID impact to retention in 2020 was much milder and shorter-lasting than we expected.
  • Retention for bootstrapped companies was equal to, or better than that of their VC-backed peers. This is a reversal from the historical trend.
  • Net revenue retention and growth are directly correlated. The data suggests that if you want to grow at 40% or greater, NRR needs to be 100% or higher. Gross revenue retention is not correlated with growth.

Download "2021 B2B SaaS Retention Benchmarks"

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