Frequent readers know I enjoy using similes, so I won’t disappoint:
SaaS companies are like leaky rowboats. If retention rates aren’t strong enough to overcome customer churn, they’ll take on water until they sink to the bottom.
Sid Jain, a senior analyst with ChartMogul, researched 2,100 companies and found that “more than half of SaaS businesses had lower retention in 2022 when compared to 2021.”
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In this detailed breakdown, he compares net revenue retention rates by ARR range and identifies benchmarks for companies that have yet to reach product-market fit.
“What is considered a good net retention rate differs by the sta...
