Saas Benchmark

Nextscenario Business Data Platform
About SaaS Metrics Benchmark Report
When we talk about SaaS benchmarking studies, many of you will have heard about the US benchmarks, which in many cases are not extrapolated to European companies.
That's why we decided to conduct this study, in order to help SaaS companies to understand the health of their business, through tracking the most important metrics such as growth, retention, churn... according to different stages of maturity.
To complement this report, we have analyzed anonymous and aggregated data from our platform, surveys, public data and compared with other studies, using as a classification factor the volume of ARR (annual recurring revenue) and the segment of customers targeted, identified by the Arpa (average sales price per customer).

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SaaS Businesses Analyzed
B2B SaaS metrics automatically calculated by country, plan, etc.
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Benchmark Saas Retention

Three points stand out in our research:

1. Retention is synonymous with growth: Companies with good retention grow 1.5-3 times faster. On average, SaaS companies with a net retention rate above 100% grow more than 40% annually. In comparison, those with a net retention rate below 60% grow less than 15% per year.

2. B2B SaaS companies have a higher net retention rate than B2C SaaS companies. The same goes for Saas with a arpa under 50 euros, due to the fact that their approach is very similar to that of b2c businesses.

3. Retention becomes more important when SaaS companies enter the post-PMF growth phase.
+ %
Growth in revenue with companies with net retention greater than 100%.
- %
Increase in revenue with companies with net retention of less than 60%.

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SaaS Metrics Benchmark

In this study we have analyzed the key metrics of growth and retention.

A key aspect in the analysis is the size of the company defined by its ARR turnover, as we have observed that this directly affects its metrics.

Another relevant aspect to consider is ARPU (Average Revenue Per User). This metric helps you understand how much revenue you generate on average per user of your platform and defines the customer segment you are targeting.

Churn Rate Benchmark in Saas

Churn measures the rate at which a business loses recurring customers. We can identify 2 types of churn:
Voluntary Churn: It is the customer who consciously performs the action of canceling.
Involuntary Churn: Sometimes a failure in the collection of a subscription may be due to consequences beyond our company and the customer's control. It may be due to credit card expiration, blocking, accounts without funds... This Churn can be recovered and identified and we must take proactive actions to avoid losing these customers.

SaaS Metrics Benchmark

Nextscenario helps us unify our customer transactions and recognize churn when it actually occurs. For example, if a user changed the payment method to Paypal, it was recorded as a churn. Or the first time, even though we could recover it. There are other subscription analysis tools on the market, but they only take into account ideal cases that rarely happen and Nextscenario adapts to these use cases. Nextscenario has saved us time in decision making and reporting.
Juan Pablo
Metricool CEO
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UX Designer
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Back-End Developer

Saas Benchmark Report

In this SaaS benchmarking report, we will explore several key aspects related to performance and customer retention in the software-as-a-service market. We will analyze the most relevant metrics and trends so that you can compare and evaluate your SaaS company's performance against the industry.
If you would like to discuss any of the aspects of the study, please contact us.

Exploring Churn Rates and Customer Retention in SaaS Business

Customer retention is critical to the long-term success of any SaaS company.

In addition, it is important to constantly track customer retention metrics and churn rates to identify trends over time. By analyzing this data on a regular basis, you will be able to spot patterns and anticipate potential problems before they turn into major customer churn.

Proactive interaction with customers also plays a crucial role in retention. Maintaining open and personalized communication, providing timely support and quickly resolving any problems customers may have are actions that strengthen the relationship and decrease the chances that they will decide to abandon the service.

Churn rate measures your company's churn rate. Understanding why customers are abandoning your service will allow you to take corrective measures to retain them. You can implement strategies to calculate it but it is not a trivial job, if you need help in these data processes, we will be happy to help you.

B2B Saas Benchmark 

Benchmarking your churn rate with the industry average rate, you can evaluate how well you are performing in terms of customer retention. You will be able to compare with our tool where you are in the percentile.

SaaS Growth Trends

It is important to be aware of current growth trends in the SaaS market. Customer expectations and the competitive landscape are constantly evolving.
Another relevant aspect in the evolution of the SaaS market is platform integration. More and more companies are looking for SaaS solutions that integrate seamlessly with other tools and systems they already use. Interoperability between different SaaS applications not only improves operational efficiency, but also enables organizations to get the most out of their technology investments.

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