The B2B Renewal Benchmark Data You’re Looking For
Before you know it, the weather gets a bit cooler, the kids go back to school, and you’re in the midst of it again: rewriting the playbook, moving the players around the field, and setting up new plays. But I’m not referring to the clump of kindergartners chasing the ball around the field; I’m referring to your 2018 revenue planning.
When it comes to setting goals for next year, what benchmark data will you rely on? Do you know where you stand among your peers? What should renewal rates be for companies with a similar ARR or ASP? To what degree does your go-to-market model impact your renewal rate?
We wondered the same things, so we commissioned a survey. In fact, we found the results so interesting that we’re going to do this every year. Titled '2017 B2B Churn Survey: Are You Crushing it or Are You Getting Crushed?," the report captures renewal data from over 500 BizOps leaders at B2B software businesses in the US, Canada and the UK, and reveals some interesting facts:
The top quintile of participants have an annual customer renewal rate of 87% or higher. Before you begin to celebrate your 127% renewal rate, let’s be sure we’re comparing apples to apples: we asked about customer churn, not dollar churn. The distinction between these metrics is critical and is covered in the report.
Your go-to-market model has an impact on your renewal rate. Those surveyed who rely primarily on an inbound model have better renewal rates than those who rely on a primarily outbound or channel model. We offer a few thoughts as to why.
Wonder if moving your renewal effort out of the sales organization and into the customer success team will improve your renewal rate? The jury’s still out on the benefits of this shift. We share some thoughts on that, too.
I hope this 2017 B2B Churn Report gives you the B2B renewal benchmark data you’re looking for.
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Steph served as Rekener’s Community Manager and CMO. A Rekener co-founder, she was previously Senior Director of Marketing at CCC, a $300M+ recurring revenue business, and served in marketing leadership roles at Vertical, @stake, Informio, DotContent and Meridian. Her first recurring revenue role was as an inside sales rep selling real-time stock pricing subscriptions.
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