The specific retention rate that is considered "good" will depend on the industry and the type of business, but generally speaking, a high retention rate is desirable. For example, for businesses with a subscription-based model, a retention rate of around 80% or higher is considered good. This means that out of 100 customers, 80 are still actively using the product or service after a given period of time. However, for businesses with a different model or in different industry, the benchmark might differ. A business that has a high churn rate (customers leaving) would want to improve their retention rate. For example, in e-commerce the industry average is around 65-70% retention rate, while in the mobile app industry, the benchmark is around 40-50%. It's important to keep in mind that retention rate should be in comparison with industry benchmarks and also with your own previous retention rate (if you have historical data). Also, you can use different retention rate metric depending on the specific area of your business that you want to improve. Overall, a high retention rate is a sign of a healthy and sustainable business, as it means that customers are satisfied and continue to use the product or service. To satisfy customers, you'll need to regularly conduct market research on them. When it comes to research, please note, I'm a vendor, so I'm rather biased about my own product, and will say that online market research is the way to go to keep any business in the know of its customers. I doubt you have the time and energy to conduct in-person interviews or send out paper surveys. In today's day and age, you can quickly learn about your markets with online market research. For context: Pollfish is a mobile survey platform that allows businesses and researchers to collect data from a panel of participants via their smartphones. It can be used to conduct surveys on a variety of topics and to reach a wide range of demographics. One of the benefits of using Pollfish is that it allows you to reach a large, diverse panel of participants quickly and easily. Additionally, because the surveys are completed on mobile devices, they can be easily taken on the go, which can increase response rates. Feel free to check us out. Answer from pollfish_official on reddit.com
Reddit
reddit.com › r/saas › what retention rate is good?
r/SaaS on Reddit: What retention rate is good?
January 11, 2023 -
Hello product hunters?
Recently I was thinking about the importance of active users when building a strong startup.
My current returning users rate is around 25-30% for my product Affistash.com.
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What about you? I'm curious on what you guys have going on : )
Top answer 1 of 5
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The specific retention rate that is considered "good" will depend on the industry and the type of business, but generally speaking, a high retention rate is desirable. For example, for businesses with a subscription-based model, a retention rate of around 80% or higher is considered good. This means that out of 100 customers, 80 are still actively using the product or service after a given period of time. However, for businesses with a different model or in different industry, the benchmark might differ. A business that has a high churn rate (customers leaving) would want to improve their retention rate. For example, in e-commerce the industry average is around 65-70% retention rate, while in the mobile app industry, the benchmark is around 40-50%. It's important to keep in mind that retention rate should be in comparison with industry benchmarks and also with your own previous retention rate (if you have historical data). Also, you can use different retention rate metric depending on the specific area of your business that you want to improve. Overall, a high retention rate is a sign of a healthy and sustainable business, as it means that customers are satisfied and continue to use the product or service. To satisfy customers, you'll need to regularly conduct market research on them. When it comes to research, please note, I'm a vendor, so I'm rather biased about my own product, and will say that online market research is the way to go to keep any business in the know of its customers. I doubt you have the time and energy to conduct in-person interviews or send out paper surveys. In today's day and age, you can quickly learn about your markets with online market research. For context: Pollfish is a mobile survey platform that allows businesses and researchers to collect data from a panel of participants via their smartphones. It can be used to conduct surveys on a variety of topics and to reach a wide range of demographics. One of the benefits of using Pollfish is that it allows you to reach a large, diverse panel of participants quickly and easily. Additionally, because the surveys are completed on mobile devices, they can be easily taken on the go, which can increase response rates. Feel free to check us out.
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A solid retention rate really depends on your industry, but generally, anything above 20% is a good starting point. For SaaS, 35%+ is ideal. E-commerce? Aim for 25%+. But here’s the thing—focus less on “what’s good” and more on improving your own rate consistently. If it's growing, you're winning!
Userpilot
userpilot.com › blog › average-customer-retention-rate
Average Customer Retention Rate By Industry & How to Improve Your SaaS Retention Rate
April 11, 2023 - The entire SaaS business model is built around retaining customers for the long term. As a result, SaaS businesses typically enjoy high retention rates. With this in mind, 90% is generally a good SaaS retention rate to aim for.
Letsbloom
letsbloom.com › blog › calculate-retention-rate
SaaS metrics 101 – Retention rate | Bloom Group S.A.
October 6, 2022 - SaaS businesses typically have extremely good retention metrics as their whole business is set up to include an element of retaining customers. With this in mind, above 90% is typically a good SaaS retention rate to aim for.
What is good customer retention rate?
Customer retention is low at the beginning of your journey of building a SaaS business. it can go up to 78% when your business reaches $1m. Best-in-class customer retention rate at any stage of business stands at ~85-87%. Retention measures how well you can retain and expand revenue from your existing customer base by meeting customer expectations.
chartmogul.com
chartmogul.com › saas-metrics › customer-retention
Customer retention rate (logo retention) | ChartMogul
What is customer retention?
Customer retention refers to the ability of a business to retain its existing customers over time. It is a crucial aspect of any business strategy, as it directly impacts revenue, customer loyalty, and overall growth. Retaining customers is important because it helps businesses reduce customer acquisition costs, increase customer lifetime value, and improve brand reputation. When you focus on customer retention, you are essentially investing in the long-term success of your business by fostering customer loyalty and satisfaction.
chartmogul.com
chartmogul.com › saas-metrics › customer-retention
Customer retention rate (logo retention) | ChartMogul
What is a good customer churn rate?
Ideally, your customer churn rate is as low as possible. Even a seemingly low monthly churn rate of, e.g., 5% corresponds to an annual loss of nearly half (46%) of existing customers. In our analysis of data from SaaS businesses, the lower your business’s average revenue per account (ARPA), the higher your churn rate. For a SaaS business with less than $10 ARPA it can be relatively high at 6–7% per month. For businesses with $500 ARPA or more, it tends to be lower at 1–2% per month. Check out our customer retention strategies to learn more.
chartmogul.com
chartmogul.com › saas-metrics › customer-retention
Customer retention rate (logo retention) | ChartMogul
SaaS Capital
saas-capital.com › home › blog posts › what is a good retention rate for a private saas company in 2025?
What is a Good Retention Rate for a Private SaaS Company in 2025? - SaaS Capital
September 22, 2025 - Across the entire survey sample of companies with more than $1 million in Annual Recurring Revenue (ARR), the median growth rate was 24%. The growth rates for groups of companies with NRR of at least 110% were higher than the population median, ...
Userpilot
userpilot.com › blog › good-retention-rates-in-saas
What is a good retention rate in SaaS and how to improve yours?
April 14, 2022 - For example, a Mixpanel report states that an acceptable user retention score for the SaaS industry is above 35 %. The monthly average churn rate for SaaS businesses is 3-8%, making the average retention rate in the range of 92-97 %.
Paddle
paddle.com › blog › 10-essential-saas-customer-retention-metrics
10 Key SaaS Customer Retention Metrics to Track
In terms of benchmarking, research from Mixpanel suggests that a customer retention rate of 35% or more is good for SaaS businesses.
ChartMogul
chartmogul.com › reports › saas-retention-report
SaaS Retention Report 2023 | ChartMogul
Best-in-class gross retention at any stage of the business is over 86%. You can only afford to lose 14% of your gross revenue in a year. The definition of "good" gross retention is dramatically different between B2B and B2C SaaS.
Reddit
reddit.com › r/fpanda › what's considered a good gross revenue retention rate for saas?
r/FPandA on Reddit: What's considered a good gross revenue retention rate for SaaS?
July 1, 2025 -
I run a small SaaS business focused on B2B project tracking, and I've been diving deeper into our metrics to prep for fundraising. One number I keep hearing about is gross revenue retention (GRR), but there’s a lot of variation on what “good” looks like depending on who you ask. Ours is sitting around 88% right now, some churn, but mostly due to downgrades or smaller accounts dropping off after short-term use.
I found info about gross retention for SaaS/subscription companies, and from what I gather, anything above 85–90% is solid for early-stage B2B, though the benchmarks climb higher for later-stage or enterprise-heavy models. We’re trying to improve expansion revenue and reduce those smaller customer losses that drag the GRR down, but I’m still figuring out how best to report and contextualize this number when talking to potential investors.
Curious what kind of GRR other folks here are seeing, or what targets you set for your team. Do most companies calculate this monthly or stick to annualized GRR for planning and reporting?
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12% churn I’d say might be on the high side. The bigger question id ask is, how much of that churn is being offset by new bookings and expansion? So basically What’s your NRR?
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I don’t really follow the last paragraph.. GRR is always an annualized number since it’s cohort based. Operationally yes you should be looking at it monthly and digging into anomalies. From an investor perspective it may be useful to contextualize the smaller accounts dropping off.. something like X% of our churn happens within the first X months. For companies that stay through that period, GRR improves to Y. Especially if the reason for those accounts dropping off is out of your control. I used to work for a SaaS company that was used by political campaigns, among other things. After each major election our GRR would tank. We simply contextualized it to show outside of that our metrics were really good. Investors loved that.
ChartMogul
chartmogul.com › saas-metrics › customer-retention
Customer retention rate (logo retention) | ChartMogul
Best-in-class customer retention rate at any stage of business stands at ~85-87%. Retention measures how well you can retain and expand revenue from your existing customer base by meeting customer expectations.
ChurnZero
churnzero.com › blog › research
A look at customer retention benchmarks for SaaS in 2023
December 21, 2023 - Key customer retention benchmarks for SaaS companies are 102% net recurring revenue (NRR) and 91% gross recurring revenue (GRR). Learn more.
Chameleon
chameleon.io › blog › customer-retention-metrics-saas-growth
5 Best SaaS Customer Retention Metrics for Growth | Chameleon
In SaaS, retention is a key metric that measures the percentage of customers you retain over a period and shows both current and future revenue. Ideally, a high retention rate indicates a low churn rate.
Saasceo
saasceo.com › home › blog › net revenue retention and why it matters
Net Revenue Retention and Why It Matters - SaasCEO.com
February 5, 2025 - For help calculating net retention, Click Here to Download my Net Revenue Template. For a B2B SaaS company focusing on Fortune 500 companies, a good gross retention rate is 98% per year, and a good net retention rate is 110%+ per year.
Ordway
ordwaylabs.com › home › gross revenue retention for saas
Gross Revenue Retention for SaaS
February 15, 2024 - A healthy SaaS business generally aims for a GRR between 85-95%, with top-tier companies often achieving 95-100%. Low GRR rates (below 85%) can indicate underlying customer satisfaction issues stemming from product quality, service problems, ...
Userpilot
userpilot.com › blog › customer-retention-metrics
15 Customer Retention Metrics for SaaS [With Formulas & Examples]
June 7, 2024 - SaaS companies aim for a retention rate of around 85-90% on average.
Woopra
woopra.com › blog › customer-retention-metrics
12 Customer Retention Metrics For SaaS Business Growth | Woopra
December 23, 2024 - Additionally, according to other ... should have a retention rate of 125%. Another report suggests that for the SaaS industry, over 35% retention is considered elite....
Amplitude
amplitude.com › blog › how-to-calculate-retention-rate-b2b-saas
How to Calculate Retention Rate in B2B SaaS | Amplitude
March 17, 2025 - On the surface, that looks like a good number for a B2B company — four users retained for every one churned. But 80% retention still means that after five years, you’ll have only 4,096 of the 10,000 users you started with.
MetricHQ
metrichq.org › saas › net-revenue-retention-rate
Net Revenue Retention Rate (NRR) | MetricHQ
Across all SaaS companies, the median Net Retention Rate is 103% to 105%. Higher Annual Contract Value (ACV) products have higher Net Retention Rates. For SaaS companies selling into small and medium businesses (SMBs), a good Net Retention Rate is 90%. For Enterprise SaaS, 125% is considered ...
MetricHQ
metrichq.org › saas › gross-revenue-retention-rate
Gross Revenue Retention Rate (GRR) | MetricHQ
The maximum possible value for Gross Revenue Retention Rate is 100%. Across all SaaS companies, the median Gross Retention Rate is ~90%. For SaaS companies selling into small and medium businesses (SMBs), a good Gross Retention Rate is 80%. For Enterprise SaaS, 90% is considered a good Gross ...
SaaStr
saastr.com › whats-a-good-net-retention-rate-in-saas
What’s a Good Net Retention Rate in SaaS? | SaaStr
March 11, 2022 - 130%+ in the enterprise, and for top B2D products. Let’s look at some of the top public SaaS companies: Squarespace — self-service, < 1% enterprise: 85% ... Workday, only 100% in the enterprise, but 95% gross retention.
PayPro Global
payproglobal.com › home › answers › what is saas customer retention rate?
What is SaaS Customer Retention Rate? | Formula & Tips
February 4, 2025 - A 35% CRR over 8 weeks is good. Nonetheless, there’s no universal index for SaaS customer retention. What constitutes an ideal CRR will closely depend on your unique situation. The best way to go about it is to monitor your own CRR trend over ...