Monthly vs. Annual Churn Rates
Now, just so we’re on the same page, 5% – 7% Annual churn – the good churn rate – translates to 0.42 – 0.58% monthly churn.
This means companies with acceptable churn only lose about 1 out of every 200 customers (or dollars) per month.
Now that’s a solid platform you can really build a high-growth company on.
On the flip side, a high churn rate is the reason you ended 2012 with a whole bunch of new customers… but had about the same amount of revenue.
Churn is the reason that – though you acquired a lot of new logos in 2012 – you had no significant year over year growth from 2011.
More SaaS + Software Stats
When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”
More Growth Strategy Stats
Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense