Saas · Enterprise software

SaaS - Delinquent Account Benchmarks & Best Practices?

Karl Laughton VP of Finance at Insightly

July 1st, 2015


I was wondering if there are any good benchmarks out there to measure the % of delinquent accounts in your subscriber base.

In Otherwords, if 10% of your subscriber base is delinquent (we were unable to authorize their credit card), is that high? Are there ways to reduce this number (other than converting more annual contracts and collecting cash up front)?



Scott Elrod mHealth technologist☁ex-COO/CIO@Cloud 9-tech for behavioral health■ex-CIO@AmeriDoc(now Teladoc) healing 1.5M patients

July 1st, 2015

Roughly,  70% of successful SaaS companies: annual churn in the < 10% range, with most at 5% or under. That's 5-7%  Annual churn, which translates to 0.42 - 0.58% monthly.
Know your Monthly Recurring Revenue (MRR) numbers, and if they are looking poor, utilize a predictive retention servicing company, like  or

If you have cc's via Stripe or similar processor that has an api , there are some creative companies linking the payment gateway APIs into abandon rate guesses.  or

Manvinder Singh SaaS Business Development & Strategy @ Google

July 1st, 2015

I haven't seen benchmarks for delinquency but since most SaaS products have <10% churn overall (I've see surveys suggesting 50% have <5% churn), and assuming most of these 10% delinquencies will will churn, it does seem on the higher side. However, i think it depends on the mix of outbound / inbound acquisition as well. ie., more outbound acquisition-> customers signing up too soon before being convinced of value-> more churn

Manvinder Singh SaaS Business Development & Strategy @ Google

July 1st, 2015

Actually i came across this discussion

which kind of  implies that credit card failures account for 15 to 50% of overall Churn... Assuming 6 to 8% overall churn. Credit card delinquencies are probably around the 2-4% range generally