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

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

That way we could put our best customer service reps to work in an effort to save the situation. It turns out that we can do that by instrumenting our SaaS applications and tracking whether our users are engaged with the key sticky features of the product. Different features will deserve different scores. For example if you were Facebook, you might score someone who uploaded a picture as far more engaged (and therefore less likely to churn), than someone who simply logged in and viewed one page.

Similarly if you sold your SaaS product to a 100 person department, and only 10 people were using it, you would score that differently to 90 people using it. So the recommendation is that you create a Customer Engagement Score, based on allocating points for the particular features used. Allocate more points for the features you believe are most sticky. (Later on you can go back and look at the customers who actually churned, and validate that you picked the right features as a predictor of who would churn.) And separately score how many users are engaged with specific scores.

More SaaS + Software Stats

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

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

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 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%”

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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More SaaS & Tech Growth Strategy Stats

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

Google only has a 30 percent female workforce

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

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

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel