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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Internet Sales strategies have a significantly lower CAC of just $0.42

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

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

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

More Growth Strategy Stats

More than 1/2 of SAAS companies increased their spending on customer retention last year

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

SaaS IPOs have more than doubled over the last 12 years

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

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