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Life Cycle Renewal Rate

What is a Life Cycle Renewal Rate?





SaaSpedia Growth Chart
renewal-rate2-saaspedia

Most frequently, the like group is a “class of” group, meaning sold in the same time period or in the same relative term. as seen below.

Note how the renewal rate/churn varies from Term number to Term number.

Each SaaS or subscription business may have a unique lifecycle renewal rate curve. It is important to understand such curves as they can have dramatic affects on pricing, packaging, compensation and other operations decisions, and can have a massive impact on forecasting.