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

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:

• Across all three customer types, companies in the top quartile of growth maintained lower net-revenue churn than mean performers.
• The net-revenue performance of the top-quartile-growth performers was driven most significantly by advantages in gross-revenue churn as opposed to logo churn or revenue expansion (upsell/cross sell) within existing accounts.
• Companies that excel at lowering gross-revenue churn emphasize several key customer-success best practices throughout their organizations.

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SaaS + Software Stats

• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time
• Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
• 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
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing
• Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month
• The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth
• Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

SaaS & Tech Growth Strategy Stats

• SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time
• 26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.
• In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide
• At Twitter, 10 percent of tech roles are staffed by women
• The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling
• Internet Sales strategies have a significantly lower CAC of just $0.42
• SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)
• In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.
• 56% treat “Existing Customer Renewals” as high priority