Campbell: Annual SaaS contracts achieve 30% better retention than monthly plans
Patrick Campbell · The Current State of SaaS Companies, Subscriptions, and Retention in 2021 | ProfitWell Founder & CEO · Feb 18, 2021 · at 12:38
Patrick Campbell, CEO of ProfitWell, shares benchmark retention data from approximately 3,000 SaaS companies.
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“Your annual contracts will typically have 30% better retention overall compared to monthlies. And then quarterlies basically have typically a 20% better retention rate than those monthlies.”
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“Right now, most people sending emails before the point of failure, it increases active cancellations by 10 to 20%. And we've seen that pretty unequivocally.”
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“The best subscription companies, specifically SAS companies out there, 20% or more of their revenue each month is, or new revenue each month is coming from their existing customer base through add ons expansion, some sort of add on.”
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“Multi-product companies between 10 and a hundred million in annual revenue, they typically grow at a 30 to 50% higher growth rate than those folks who are single product.”
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