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

From Mckinsey
Quote in SaaS & Tech Growth Strategy

Companies typically track three churn metrics: customer churn, gross-revenue churn, and net-revenue churn. The most comprehensive of these three metrics is net-revenue churn, as it captures both the dollar value lost from churning customers and the dollar value gained from expansion revenue (which comes from both up-selling and cross-selling to existing customers). Our analysis showed several results:

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The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Is your SaaS business viable?

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

Cloud application services (SaaS) to reach $126 billions by the end of 2021

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54% treat upselling and add-on sales as high priority

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Growing faster has twice as much impact on share price as improving margins