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Revenue & Profit Growth: What is a normal churn rate for b2b saas company with an average monthly revenue of $850 per customer? Is 10% of the total monthly sales high or low?
BH
BH
Brent Halliburton, Product guy, start-up guy, advertising guy. answered:

My professional opinion, powered by research:
- In 2011, Pacific Crest surveyed SaaS businesses about churn rates and more than 75% had an annual churn rate below 5%.[1]
- If you are targeting SMBs, conventional wisdom is an annual churn rate of 15% is good (1.17% monthly)[2].

[1] http://www.pacificcrest-news.com/saas/Pacific%20Crest%202011%20SaaS%20Workshop.pdf
[2] http://blog.hopkins.io/2014/03/20/churn/

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