Cybersecurity SaaS vs GovTech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than Cybersecurity SaaS (1.2%), a difference of 0.4 percentage points. GovTech median ARPU is $500 versus $380 for Cybersecurity SaaS.
Head-to-head benchmarks
| Metric | Cybersecurity SaaS | GovTech |
|---|---|---|
| Monthly churn | 1.2% | 0.8% |
| Annual churn | 13.6% | 9.2% |
| Median ARPU | $380 | $500 |
| Typical customer base | 100-3,000 | 50-500 |
Top cybersecurity saas churn drivers
- Consolidation into SIEM or extended detection platform27%
- Failed to detect a real incident, eroding trust24%
- Compliance audit required a different certified solution21%
- Too complex for internal security team to operate16%
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Why govtech retains better than cybersecurity saas
The 0.4-point gap between GovTech and Cybersecurity SaaS reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Cybersecurity SaaS tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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