Answers
Quick answers to common questions.
- How to evaluate SaaS revenue quality
- Evaluate revenue quality by analyzing logo retention, MRR trends, concentration risk, annual vs monthly plan mix, and inactive paid accounts. ChurnLens automates this analysis.
- What is a good churn rate for SaaS?
- A good annual churn rate for B2B SaaS is under 7%. For enterprise SaaS, aim for under 5%. Consumer SaaS may see higher rates.
- How to detect revenue concentration risk
- Revenue concentration risk exists when any single customer accounts for more than 10% of MRR. Calculate the percentage of MRR from your top 5 and top 10 customers.