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

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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.

More SaaS + Software Stats

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

More Growth Strategy Stats

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Customer Segmentation analysis will help point out which are your most profitable segments

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn