What's a good SaaS customer retention rate?
Higher customer retention drives higher valuations by increasing a company’s size, growth rate, profitability, and predictability. The total effect of retention, however, is often under-appreciated because of its multi-dimensional impact and cumulative nature, which can be modest over a twelve-month planning horizon, but has a large difference over a 3- to 5-year period.
Our recent survey of over 200 SaaS companies yielded some interesting insight into key retention benchmarks.
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