SaaS Churn Benchmarks for B2B Companies

A good churn rate for a B2B company serving small and medium businesses (SMB) and mid-market businesses (< 1000 employees) is 2.5% - 5.0% per month. A great churn rate is less than 1.5% per month.

A good churn rate for B2B company serving enterprise customers (1000+ employees) is 1-2% per month. A great churn rate is less than 0.5% per month.

Read What is good monthly churn from Lenny Rachitsky.

  • Customer Success First Then Sales

    In the early days of a startup with a product in the market, it seems intuitively correct that you should hire some experienced salespeople to get you more sales. However, from many conversations with founders and early sales hires of B2B SaaS companies, I’ve learned it’s best to start with customer success first.