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In 2018, the global traditional outsourcing industry generated 85.6 billion U.S. dollars in revenue. In that same year, the total contract value of the business process outsourcing (BPO) market amounted to 23.6 billion U.S. dollars.

Statista

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If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

47% of millennials want to work at diverse companies, according to a recent study.

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

A 1% increase in pricing strategy yields an average 11% increase in profit

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

53% of marketers say “no” to projects never or just a few times a year, while another 26% simply don’t have the authority to say “no” at all

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

More Growth Strategy Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

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

They may forget what you said, but they will never forget how you made them feel.

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

How to Reduce Churn

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts