2022 SaaS Retention Benchmarks for Private B2B 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 11th annual survey of more than 1,500 private B2B SaaS companies.
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:
- Growth rate is positively and exponentially correlated with net revenue retention, with a target benchmark of 110% NRR to align with the sample-wide median growth rate of 40%.
- Gross revenue retention is a “table stakes” benchmark – to have a shot at performance parity with your peers, GRR must be at least 80%, but there is no correlation between growth rate and GRR above 80%.
- Higher-ACV products show higher net and gross retention.
- Contracting length does not appear to impact net revenue retention but does show a relationship with gross retention.
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